Asian Basic and Applied Research Journal

Small and medium-sized enterprises (SMEs) contribute to employment, entrepreneurship and economic activity in Kenya, yet their performance remains a concern. The expansion of digital financial services has created new opportunities for business transactions and financial management, although greater use of these services does not necessarily correspond to better enterprise outcomes. This study examined the associations of mobile banking and online banking services with SME performance in Nairobi County, Kenya. An explanatory cross-sectional survey design was adopted, with questionnaire data collected from representatives of selected SMEs. The study employed correlation and multiple regression analyses to assess the direction and statistical significance of the relationships between banking services and performance. The regression results indicated a negative but statistically insignificant association between mobile banking services and SME performance (B = −0.044, p = 0.425). In contrast, online banking services demonstrated a positive and statistically significant association with SME performance (B = 0.204, p = 0.023). The reported model explained 17.8% of the variation in the SME performance score, indicating that factors beyond the banking services examined may also be relevant. The findings suggest that online banking services may be associated with more favourable performance outcomes, whereas the evidence did not establish a significant relationship for mobile banking. The study recommends that SME owners and managers assess online banking facilities in relation to operational needs, security, reliability and transaction costs, without assuming that adoption alone improves performance.