7 in 10 Kenyan SMEs expect revenue growth in 2026

NAIROBI, Kenya, June 19 – Seven in ten Kenyan small and medium-sized enterprises (SMEs) expect their revenues to grow over the next 12 months, a new data shows.

Mastercard SME Confidence Index 2026 shows that this is despite continued pressure from inflation and rising operating costs, according to the

The survey shows that 70 percent of SMEs project revenue growth over the coming year, while 66 percent expressed confidence in their overall business outlook.

The report attributes the optimism largely to increased adoption of digital technologies and mobile payments, which have become central to business operations.

Kenya’s SMEs remain among the most digitally connected in the region, with 95 percent accepting mobile payments.

Mobile transactions account for 41 percent of payment volumes, ahead of card payments at 29 percent.

While business sentiment remains positive, inflation continues to weigh heavily on enterprises, the report adds.

About 77 percent of respondents identified rising prices as the biggest challenge affecting their operations, underscoring the difficult trading environment facing many firms.

“While inflation remains a significant concern for many businesses, SMEs continue to demonstrate confidence in their ability to grow over the next year,” said Gabriel Swanepoel, Division President for Africa at Mastercard.

“The findings point to the increasing role of digital tools and payment technologies in helping businesses adapt and remain competitive.”

Access to capital is also emerging as a major factor behind growth expectations.

Nearly 44 percent of SMEs sought external funding over the past year, with 46 percent of those seeking credit primarily to expand their businesses rather than sustain day-to-day operations.

“Kenyan SMEs are increasingly looking beyond payment acceptance and focusing on data, analytics and access to financing as the next phase of growth,” said Shehryar Ali, Senior Vice President and Country Manager for East Africa at Mastercard.

“The demand for better business insights and growth capital reflects a strong appetite for expansion despite prevailing economic pressures.”

Likewise, the report indicates that businesses are prioritizing simpler payment solutions and improved access to customer data, with 80 percent identifying seamless payment systems as critical to future growth and 70 percent seeking better analytics and business insights.