Keeping track of unpaid invoices, organising employee salaries and preparing financial statements remain difficult tasks for many Kenyan small businesses, even as digital payments become increasingly common.

A new report by Visa has revealed that most small and medium-sized enterprises (SMEs) in Kenya have embraced digital transactions but continue to struggle with the systems needed to manage their daily operations.

The Pay and Get Paid 2026 report found that only 19 per cent of surveyed businesses use integrated platforms that combine payment services with business management tools. These systems bring together functions such as invoicing, payroll, financial reporting and payment processing in one place.

The findings expose a gap in the country’s business digitisation efforts, with many entrepreneurs adopting digital payment methods without making similar investments in the management of their businesses.

According to the study, 30 per cent of surveyed SMEs struggle to track outstanding invoices, making it difficult to establish which customers have paid and how much money remains outstanding.

Another 27 per cent reported difficulties organising payroll records, while 26 per cent said preparing financial reports was a challenge.

These administrative responsibilities have direct implications for business performance. Poor invoice tracking can delay the identification of unpaid debts, while disorganised payroll records can complicate salary management and financial planning.

Financial reporting is equally important because it enables business owners to understand their income, expenditure, profitability and cash flow. Without reliable records, entrepreneurs may struggle to determine whether their businesses are performing well or identify areas where spending needs to be controlled.

For smaller enterprises with limited administrative staff, managing these separate responsibilities can consume valuable time and resources.

The report also identified limited awareness as an obstacle to adopting integrated business management solutions.

About 20 per cent of respondents said they were unaware that such platforms existed. A further 14 per cent considered their businesses too small to require the technology, while 12 per cent said they did not see sufficient benefits to justify its adoption.

Despite these barriers, interest in integrated systems remains high. Visa found that 81 per cent of surveyed businesses considered an all-in-one payment and business management platform appealing.

Among businesses already using the technology, 85 per cent reported satisfaction with the solutions. Another 81 per cent said the platforms had improved operational efficiency by reducing the time and effort spent managing business activities.

The findings also highlight the potential role of integrated financial technology in improving access to credit for small businesses.

When payment records are connected to other business information, financial institutions can obtain a clearer picture of an enterprise’s cash flows and financial activities. This information can help lenders assess repayment capacity and develop financing products that reflect the actual needs of smaller businesses.

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

She noted that integrated platforms could provide a more complete picture of SME financial activities, creating opportunities for tailored support and financing solutions to help businesses manage working capital and grow.

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

The findings suggest that the next phase of SME digitisation will require more than access to digital payment services. Businesses also need connected management systems that can turn transaction records into useful financial information, improve operational oversight and support their ability to secure financing.