Sharp Daily
No Result
View All Result
Saturday, August 30, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Technology

Diversifying SMEs Financial Options Through Digitization

Dennis Otsieno by Dennis Otsieno
February 24, 2023
in Technology
Reading Time: 2 mins read
SMEs

[Photo/ Courtesy]

Small and medium-sized enterprises (SMEs) are critical to Kenya’s economic growth.

According to the Central Bank of Kenya‘s recent National Economic Survey report, SMEs account for 98 percent of all businesses in Kenya, create 30 percent of jobs annually and contribute three percent of GDP.

Aside from employing people, SMEs provide goods and services and serve as an important link in the manufacturing value chain, generating economic activity along the way. Many manufactured products reach consumers via SMEs, typically through a network of small independent retail stores such as dukas and kiosks.

Despite the important role that SMEs play in the Kenyan economy, there are several obstacles to their survival and success. In fact, despite having the highest entrepreneurship rate in the world, research shows that up to 80 percent of African SMEs fail within the first five years.

RELATEDPOSTS

How Kenya is future-proofing its economy against illicit finance

July 9, 2025

Using technology to tackle Kenya’s counterfeit drug menace

June 18, 2025

Access to infrastructure and connectivity, business enablement tools, finance, and digital skills are all potential roadblocks for SMEs. The most significant barrier that SMEs face is obtaining financing and affordable lending.

Read: SMEs In Kenya- The Double Solution

These businesses frequently lack appropriate information such as credit history, financial statements, and other required data, while traditional credit-scoring models used by many financial institutions discriminate against SMEs. Without access to capital, SMEs are unable to invest in and grow their businesses.

There is need to enable tools that SMEs can use to collect and manage transactional data that can be used to provide valuable insights to guide SME decision-making and can be leveraged to create financial reports.

Digitization can assist businesses in developing a financial and transactional history that will allow them to obtain loans, thus diversifying their financial options.

Email your news TIPS to editor@thesharpdaily.com

Previous Post

Inequality-Kenya’s Biggest Economic Problem

Next Post

E-commerce Is More Of A Tool Than An Idea

Dennis Otsieno

Dennis Otsieno

Related Posts

Analysis

AI and the future of investment research

August 22, 2025
Technology

AI in Kenyan enterprises: 2025 trends and challenges

April 30, 2025
Technology

Investing in Kenya’s fast-growing education sector

December 16, 2024
Technology

Harnessing technology to tackle Kenya’s youth joblessness

December 13, 2024
Folder with close up on the word claims and a note where it is written under investigation. Concept of insurance fraud, 3d Illustration
Technology

Inside the growing threat of high-tech insurance fraud in 2024

November 4, 2024
Technology

Roam Air completes 6,000 km solar-powered journey across Africa

October 17, 2024

LATEST STORIES

The Importance of Including Pension Plans in Corporate Benefits Packages

August 29, 2025

The informal labor market and classical unemployment in the Kenyan context

August 28, 2025

Kenya’s Eurobond yields ease after S&P rating upgrade

August 28, 2025

Kenya’s strategic debt pivot: Smoothing, Strengthening, Sustaining

August 27, 2025

Bank on your paycheck: Invest smart with CMMF

August 26, 2025

Finding Balance: My Journey with Internet Self-Care

August 22, 2025

Why Young Kenyans Cannot Afford to Ignore Private Pensions

August 22, 2025

Strategies for Nairobi to emerge as Africa’s financial hub

August 22, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024