Tech firms rush to put small shops online as market race intensifies

Technology firms are increasingly targeting small businesses as competition grows to bring more enterprises online. [AI Generated]

Competition to digitise Kenya's micro, small and medium enterprises is intensifying as technology firms move to tap a market that remains largely underserved despite growth in internet access, digital payments and online commerce.

For years, many small businesses have relied on walk-in customers, referrals and informal networks to sell products and services.

While mobile money and digital payments have become widespread, thousands of enterprises still lack an online presence, limiting their ability to reach new customers and expand beyond local markets.

The gap has created opportunities for technology firms offering digital marketplaces, e-commerce services, business directories and market intelligence tools for small enterprises.

The race has also drawn government attention. Officials plan to launch a digital platform targeting more than 100,000 businesses by 2027 through Posta Kenya and M-Pesa infrastructure, underscoring the scale of the market and competition for entrepreneurs seeking online customers.

The push comes as policymakers and industry players increasingly view digital adoption as a driver of productivity, job creation and economic growth.

Kenya's micro, small and medium enterprises comprise more than 7.4 million businesses and account for a large share of employment across retail, manufacturing, agriculture and services.

One of the latest entrants is BuyKenya Business Solutions, which launched operations on Tuesday and deployed 15 sales agents in Nairobi to recruit businesses onto its digital platforms as part of a nationwide expansion strategy.

The company operates four platforms that provide business listings, e-commerce services, market intelligence, workforce development and digital trade support for micro, small and medium enterprises.

Chief Executive Officer Jevans Omonge said many entrepreneurs continue to face challenges accessing markets and adopting digital tools.

"For too long, many entrepreneurs have struggled with visibility, market access and digital transformation. BuyKenya is providing a practical solution that enables businesses to be discovered, transact online, access market intelligence and compete effectively in local, regional and global markets," said Omonge.

The company's agents will focus on helping businesses establish digital profiles and adopt online commerce tools.

Founding Director and Chairman Daniel Juma Omondi said the platform targets a visibility gap holding back many entrepreneurs.

"What many of them lack is visibility and access to customers. Through BuyKenya, we are connecting businesses to opportunities and creating pathways for inclusive economic growth," noted Omondi.