3
Small and medium enterprises (SMEs) are rapidly adopting e-commerce, with 42% now selling online via platforms like Jumia, Copia, and Instagram, according to a 2024 KNBS survey. Driven by mobile internet penetration (91%) and low data costs, digital sales grew by 33% in 2023. Fashion, agri-inputs, and beauty products lead the trend. The government’s Hustler Fund has disbursed Ksh18 billion in digital loans to 2.4 million micro-businesses, many using funds for smartphones and inventory. Challenges include logistics in rural areas and digital skills gaps. Google and KEPSA are training 50,000 SMEs in digital marketing this year. E-commerce is now seen as critical for youth employment and export diversification.