Government officials and industry players packed a Nairobi conference room this week, zeroing in on the stubborn obstacles that keep Kenya from cashing in on cross-border digital commerce. The stakes have shifted from talk to action.
By June 2026, Kenya had reached 64.3 million mobile internet subscriptions, a 9.7% increase from the previous year, with 4G connections at 48.3 million and 5G subscriptions more than doubling to 2.1 million.
Ambition meets operational snags
Official projections put Kenya’s digital economy on track to add Sh662 billion to GDP by 2028. The country counts nearly 88 million SIM subscriptions, over 52 million smartphones, and close to 55 million mobile broadband connections as of June 2026. These numbers suggest a massive addressable market, but the reality is less tidy. SIM and smartphone tallies overstate unique users, and growth keeps running into tax friction, electronic invoicing headaches, patchy delivery, consumer trust issues, and tangled cross-border rules.
Payment tech is evolving. M-Pesa’s tap-to-pay and dynamic QR features are in play, while Airtel Money and Safaricom are locked in a race to expand international payment reach. Still, cross-border finance remains a choke point. The African Development Bank and Family Bank have set up a $10 million trade-finance facility to help Kenyan businesses get foreign currency and credit, but demand dwarfs supply. In February 2026, PesaLink linked up with the Pan-African Payment and Settlement System (PAPSS) to enable instant, round-the-clock cross-border payments in local currencies. This move connects more than 80 PesaLink participants and over 160 PAPSS banks, according to a Cytonn Investments market update.
Regulation and logistics under the microscope
Kenya’s regulatory playbook is under revision. The draft National Payment System Bill aims to tackle interoperability and open finance, and to smooth cross-border payments. In October 2026, the Ministry of Finance and the Central Bank released the draft National Payment System Policy and Bill for public comment. The proposal would require foreign payment firms to operate through registered branches and mandate full sender and recipient identification for cross-border transfers above set limits, as detailed in the official policy document.
Africa Trade Gateway, launched in June 2023, now operates in over 45 African countries, bringing together 45 trade support organizations, 110 commercial banks, and around 25,000 verified companies.
The government’s digital trade plan goes beyond e-commerce. It aims to connect Kenyan exporters, manufacturers, software firms, and small merchants to regional and global markets. Investment in digital infrastructure and targeted skills programs for MSMEs, women, and youth is meant to widen access and cut friction in payments, finance, logistics, and business records.
Integration or fragmentation ahead
Kenya’s digital trade scene sits at a crossroads. The country has built up mobile money, broadband, and online business services, but the next step is integration. Systems need to mesh so businesses can transact, finance, and deliver across borders without extra cost. The government is moving to tackle regulatory, financial, and logistical snags, but the outcome will hinge on execution. The original report is available at TECHTRENDSKE.co.ke.
