Only 20–25 percent of registered businesses in Kenya have an e-commerce site (CAK–KEPSA E-Commerce Business Survey 2024.) This is a worrying statistic in a country that transacted Ksh 9.4 trillion on mobile money (M-Pesa) alone in 2024, which is 55 percent of GDP.
Why do so many businesses lack e-commerce sites?
Cultural Habits and Online Shopping Preferences
Kenyans spend an average of 3 hours and 43 minutes online every day, mostly on social, chat, and video streaming platforms.
Traditional e-commerce websites barely get a glance. Social commerce, including selling via Instagram, Facebook, and WhatsApp, is where most online shopping happens in Nairobi, Mombasa, Kisumu, and other urban centers.
Barriers to Online Payments in Kenya
Trust Issues and Fraud Concerns
Online fraud is rampant, and many Kenyans insist on paying cash on delivery. Businesses fear reputational damage if payments are reversed or deliveries fail.
Compliance Challenges and Regulations
Some businesses want to stay off the taxman’s radar. E-commerce brings visibility, which can trigger ETIMS and other compliance checks.
High Setup and Maintenance Costs
Building an e-commerce site requires a solid tech stack with secure payment gateways, geo-mapping for delivery, and ongoing maintenance. This scares off many small businesses.
Social Commerce as an Alternative
Instagram, Facebook, and WhatsApp have become the main online marketplaces for Kenyan consumers. The setup is simple, the reach is wide, and operating costs are low. Businesses can start selling almost instantly.
The Payment Headache for Businesses in Kenya
It’s a smooth sailing ride until it comes to receiving payments. Many businesses still rely on personal M-Pesa lines to collect money. At first, it seems convenient because cash comes in quickly. But soon, business income, personal money, and other contributions get mixed up. Tracking who paid for what becomes messy.
Solving the Payment Headache
At Kiotapay, we’re on a mission to help African businesses seamlessly receive payments in any channel that they and their clients find convenient.
Receive payments straight into your business account via M-Pesa or bank.
Many businesses still use their personal M-Pesa lines to collect customer payments. At first, it seems simple, but soon money from personal cash, family contributions, Chama payments, and business income all land in the same place. It becomes hard to separate what belongs to you and what belongs to the business. With Kiotapay, money flows straight into your business account. No confusion. No mixing of personal and business funds.
Get instant alerts every time a customer pays.
Waiting for M-Pesa SMS notifications or payment confirmations can be stressful. Sometimes the notification comes late, other times it doesn’t come at all. Meanwhile, the customer asks, “Did it go through?” and you’re stuck. With Kiotapay, you are notified instantly the moment a customer pays. No chasing receipts. No asking for screenshots. You can release goods or confirm services confidently.
Tag and track payments against the right customer, order, or branch.
As your business grows, so does payment complexity. Who paid for this order? Which branch collected the money? Was this payment for goods or services? Without proper tracking, reconciliation can take hours or days. Kiotapay tags every payment to the right customer, order, or branch, making reconciliation smooth even at scale.
Pay suppliers, staff, and branches from one place.
Many business owners currently pay staff, suppliers, and branches using separate apps, phones, or bank accounts. It’s confusing and risky. Kiotapay simplifies this with one dashboard where you pay everyone quickly, safely, and in one place.
Control spending and budgets so every shilling has a purpose.
Money leaks silently when spending is uncontrolled. A branch overspends. A supplier is paid twice. Kiotapay lets you set spending limits, approve payments, and track money in real time. Every coin works harder for the business, helping optimize budgets and reduce waste.
Think of it like this
Without Kiotapay, payments are scattered everywhere. Some money sits in a rider’s pocket, other funds in staff M-Pesa accounts, and bank transfers await reconciliation. Nobody has the full picture.
With Kiotapay, everything is centralized. You see who paid, when, and for what. Nothing slips through the cracks. Your business finally feels organized and in control.
Why Businesses Prefer Kiotapay
Affordable for SMEs and startups
Global payment systems often come with heavy subscription fees, set-up costs, or hidden charges that eat into margins. For many Kenyan SMEs, this makes them unsustainable. Kiotapay flips that model.
There are no monthly subscription fees, only a fractionable cut per transaction mostly under 1 percent. Whether you’re a kiosk, online boutique, or growing chain in Nairobi, Mombasa, or Kisumu, you only pay when you earn. It’s growth-friendly and cash-flow friendly.
Fast, simple onboarding
Setting up payments shouldn’t require weeks of technical integration or outside consultants. With Kiotapay, it doesn’t. All it takes is creating an account.
Once onboarded, you’re ready to start receiving and managing payments in under 30 minutes. No complex coding. No heavy training. Most businesses are transacting the same day.
Built on trust, compliance, and security
Kenyan businesses can’t afford payment risks. A single breach or compliance slip can shut down operations or attract penalties. Kiotapay is fully compliant with Kenyan monetary regulations and aligned with Central Bank policies. It also uses top-tier international security standards (like PCI-DSS for payments) to protect both businesses and customers.
Local presence, global standards
Unlike global platforms where support feels distant, Kiotapay is rooted in Kenya with a Westlands office. Businesses can walk in, get help, and talk to real people. This local presence is backed by a team that actively listens to client feedback and adapts the platform to fit African business realities.
Scalable for growth
A side hustle selling on WhatsApp today might become a nationwide brand tomorrow. With Kiotapay, you don’t need to keep switching systems as you scale.
The platform grows with you, from one branch to multiple outlets, from single payments to bulk supplier payouts, salary disbursements, and branch-level controls.
Designed for the way Africans do business
Most global systems assume everyone uses cards, PayPal, or bank transfers. But in Kenya, mobile money rules. Kiotapay was built with this in mind, offering seamless M-Pesa integrations, instant alerts, and tools that fit social commerce workflows. This isn’t a foreign solution retrofitted to Kenya; it’s a Kenyan-born platform tailored for the African marketplace.
Real support, not chatbots
When payments fail or reconciliation goes wrong, you don’t want to be stuck waiting 72 hours for a response from a faceless chatbot. Kiotapay’s dedicated support team works hand in hand with clients. Whether it’s resolving a delayed transaction, customizing reports, or troubleshooting a payout, you have people who understand your business context ready to help.
Taking Your Business Online with Confidence
Kenya’s online shopping culture is growing, and social commerce dominates. The main challenge for SMEs remains seamless, secure payments. Kiotapay bridges that gap, offering digital payments for all business spending, instant notifications, smooth reconciliation, and complete control over budgets. Your business finally gets organized, efficient, and ready to scale online.
Say good bye to the payment tracking and business funds management stress. Join the Kiotapay way of life.
Book Demo: kiotapay.co.ke/book-demo
