TECH WAVE: How Kenyan SMEs are leveraging technology to make profits

Small and medium enterprises (SMEs) are the driving force of Kenya’s economy, pushing growth and creating significant employment opportunities, contributing between 33% and 40% of Kenya’s GDP.

To remain competitive and efficient, most SMEs in Kenya are now leveraging technology, with most of them embracing mobile payments like M-Pesa to streamline operations and improve cash flow.

IT expert and founder of Emmerce Ruhi Suttarwala says Kenyan SMEs are among the best adopters of technology in driving their operations and growth.

"In Kenya the uptake of technology, the uptake of AI is amongst the best in the world. The recent poll that came out on AI usage, Kenya was number one followed by UAE. These are not the markets you really expect to be on top, above US and the UK," says Suttarwala.

One such business that has adopted technology in most of its operations is Ivy League Beauty, a skin and hair care venture dealing in premium products targeting Kenyans in Nairobi and the country.

Its founder Joseph Sosi launched the Skincare Wallet, an innovative payment planning solution that allows consumers to deposit flexible amounts over time and redeem them for skincare and premium beauty products.

“We are seeing a population committed to skincare but often forced to delay or downgrade routines due to cost. The Skincare Wallet removes that barrier by enabling customers to plan ahead, spread costs, and maintain consistency,” Sosi says.

Early adopters of the Skincare Wallet in its 6-month pilot phase, report improved routine consistency and better control over beauty spending.

DJ Bunney, a local entertainer, is one of the earliest adopters of the skincare wallet.

"With the wallet now I can have time to plan and say I want this product by this time. As a DJ I need to do a few gigs, so I leverage on the points to get products that would otherwise be premium," DJ Bunney.

Suttarwala says SMEs that have adopted technology in their operations are way ahead and are breaking even faster than their competitors who are stuck to the traditional ways of doing things.

Kenya’s beauty and personal care market is one of the biggest, valued at an estimated $125M in 2026.

To remain competitive, Ivy League Beauty has also employed the services of an in-house dermatologist who assesses clients and recommends the best products for their skins and hair.

“When you have a skin concern it's only the dermatologist who is well versed in skincare who can be able to decipher that and come up with a solution to that," Dr. Anita Achieng, a dermatologist, says.

Sosi looks forward to create a community of customers that will benefit from the technology he has incorporated into his business as a way of scaling up operations.