FinTech-Led Cost Management and SME Growth in Kitui County, Kenya

This study assessed the influence of FinTech-led cost management on the growth of small and medium enterprises (SMEs) in Kitui County, Kenya, using sales margin as the indicator of growth. Grounded in the Technology Acceptance Model, Diffusion of Innovation Theory, and Institutional Theory, the study examined transaction processing cost, failed or incorrect transactions, payment processing speed, and perceived security and trust as predictor variables. Data were collected through a structured questionnaire from 344 SME owners and managers selected using stratified random sampling. Correlation and multiple regression analyses were conducted using SPSS version 27. The findings indicate that FinTech-led cost management significantly influences SME growth by reducing operational costs, improving transaction efficiency, minimising transaction errors, and enhancing trust in digital financial systems. The study concludes that effective FinTech-enabled cost management strengthens enterprise competitiveness and supports sustainable SME growth, providing useful insights for policymakers, financial institutions, FinTech providers, and SME owners seeking to improve business performance.