Influence of financial accessibility on the financial performance of small and medium-sized enterprises (SMEs) in Kenya

Small and Medium-Sized Enterprises (SMEs) form the backbone of Kenya’s economy, yet many continue to struggle with financial accessibility. Financial accessibility, defined as the ease with which SMEs can obtain financial services, plays a pivotal role in determining their performance. Despite growing interest in SME financing, empirical findings remain scattered and inconclusive. This systematic review consolidates existing literature to evaluate how financial accessibility influences the financial performance of SMEs in Kenya. The objective of this review was to critically assess and synthesise empirical evidence on the relationship between financial accessibility and the financial performance of SMEs in Kenya, with the aim of identifying key factors, trends, gaps, and policy implications. A systematic literature search was conducted across databases including Google Scholar, ResearchGate, JSTOR, and university repositories, focusing on peer-reviewed articles, theses, and grey literature published between 2013 and 2025. The review followed PRISMA guidelines to ensure transparency and replicability. Inclusion criteria required studies to focus on financial accessibility (e.g., access to credit, banking services, mobile money) and measurable financial performance indicators (e.g., revenue growth, profitability, return on investment). A total of 32 relevant studies were selected and thematically analysed. The review revealed a consistent positive correlation between financial accessibility and SME financial performance. Access to formal credit and digital financial services emerged as the most influential factors. However, challenges such as high interest rates, collateral requirements, and limited financial literacy were found to hinder the full utilisation of accessible financial services. Notably, SMEs in urban areas reported better financial outcomes than their rural counterparts, indicating geographic disparities. Financial accessibility significantly influences the financial performance of Kenyan SMEs, particularly when supported by enabling regulatory environments and financial literacy. However, structural and contextual barriers continue to limit the potential benefits for many enterprises. Policymakers should prioritise reforms aimed at lowering borrowing costs, expanding credit guarantee schemes, and promoting financial education for SME owners. Future research should focus on sector-specific and gender-based analyses to better understand subgroup dynamics. This review provides a comprehensive synthesis of over a decade’s worth of evidence on financial accessibility and SME performance in Kenya, offering an updated perspective and identifying underexplored areas such as digital finance adoption and regional inequities.