These findings illustrate that digital payment adoption does not automatically translate into comprehensive business digitisation. Digital payments fail to solve SMEs’ productivity gap -report Kenyan small businesses have embraced digital payments, but many are yet to translate the convenience of electronic transactions into more efficient business operations.
A new survey by global payments firm Visa shows that fragmented systems and time-consuming administrative tasks continue to undermine productivity. According to Visa, while digital transactions have become commonplace among small and medium-sized enterprises (SMEs), only 19 per cent of those surveyed use an integrated platform connecting payments with broader business management.
It points to the next challenge in Kenya’s digital transformation: moving beyond the ability to send and receive money towards systems that help businesses manage cash flow, payroll, invoices and financial reporting more efficiently. The survey, conducted through face-to-face interviews with business owners and financial decision-makers between March and April 2026, covered 256 Kenyan SMEs as part of research across 11 markets.
The administrative burden remains significant. About 30 per cent of surveyed businesses reported difficulties tracking outstanding invoices, while 27 per cent struggled to organise payroll records and 26 per cent faced challenges preparing financial reports. Poor invoice tracking can delay collections and leave enterprises short of working capital, while disorganised payroll records and financial reporting make it harder to monitor costs, assess profitability and plan expansion.
For smaller firms operating with limited staff and tight margins, time spent reconciling transactions across separate applications, spreadsheets and manual records can divert resources from sales, customer service and business development. The gap is particularly important in an economy where mobile money has become a central part of everyday commerce.