NAIROBI, Kenya, Nov 3 – Kenyan small and medium-sized enterprises (SMEs) are facing operational and administrative challenges despite growing adoption of digital payments, with fragmented business management systems limiting efficiency and access to financing, a new Visa report shows.

The Pay and Get Paid 2026 report found that although most surveyed businesses actively make and receive digital payments, only 19 percent use integrated platforms that combine payment services with day-to-day business management.

The findings point to a wider digitization challenge among SMEs, where adopting digital payments has not necessarily translated into more efficient financial management, leaving businesses to handle invoicing, payroll and financial reporting through separate systems.

The survey found that 30 percent of SMEs struggle to track outstanding invoices, while 27 percent have difficulties organizing payroll records.

Another 26 percent cited challenges in preparing financial reports, highlighting administrative burdens that can affect business productivity and financial visibility.

Awareness and perceptions are also emerging as barriers to adopting integrated business solutions.

About 20 percent of respondents said they were unaware such platforms existed, while 14 percent felt their businesses were too small to require them.

A further 12 percent did not see sufficient benefits to justify adoption.

The findings suggest that beyond access to digital payment infrastructure, SMEs need affordable, accessible and relevant tools to manage their operations as they navigate growth, working capital constraints and increasing administrative demands.

Despite these challenges, demand for integrated solutions remains high, with 81 percent of surveyed businesses saying they found an all-in-one payment and business management platform appealing.

Businesses already using such platforms reported an 85 percent satisfaction rate, with 81 percent indicating that the tools had improved operational efficiency by reducing the time and effort spent managing business activities.

Visa Vice President and Head of East Africa Anne Kinuthia-Otieno said connecting payments with business operations could help financial institutions better understand the needs of smaller enterprises.

“As digital transactions become part of everyday commerce, the value for SMEs increasingly lies in what those payments can enable after the transaction,” she said.

“Integrated platforms can help build a more complete, data-informed view of SME needs, opening the door to more tailored support and, where appropriate, financing solutions that can help businesses manage working capital and grow.”

The report also identifies an opportunity for lenders to use payment histories and business management data to develop a clearer picture of SME cash flows, potentially improving risk assessment and the design of financing products.

The study was conducted through face-to-face interviews with business owners and financial decision-makers across 11 markets between March and April 2026, including 256 SMEs in Kenya.