How African SMEs can digitise their businesses

Start with the problem, not the software

Digitising is not the aim. The aim is to know what you sold, what you own, who owes you and whether you made money, without chasing paper.

Ask your team where the most time or money is lost each week. Common answers are stock that does not match the books, invoices sent late, debts nobody follows up, and month-end that takes two weeks. Pick one. That is your first project.

A practical order

This order suits many trading and service businesses. Change it if your biggest problem is elsewhere.

Stage	What to do	Sign it is working
1. Tidy up	Separate business and personal money. Keep one list of products, one of customers and one of suppliers.	Anyone can find a price or a phone number quickly.
2. Record sales	Use a single way to record every sale and receipt, and accept mobile money on a business number.	Daily takings match what is in the till and the mobile money account.
3. Meet tax rules	In Kenya, KRA requires electronic tax invoices through eTIMS. Pick the KRA option that fits your volume.	Invoices are compliant with no last-minute rush.
4. Control stock	Count stock, then record each receipt, sale and transfer.	Regular counts show small differences you can explain.
5. Join up the books	Link sales, stock and purchasing to your accounts.	Monthly figures come out within days, and your accountant trusts them.
6. Add the rest	Payroll, approvals, delivery, fleet and CRM, as needed.	Each one replaces real manual work.

Choosing tools at each stage

A spreadsheet is fine for a small business with few items and one person responsible. Protect it and back it up.
eTIMS through KRA's own options can work for low volumes. KRA lists eTIMS Lite, a mobile app and an online portal for some taxpayers, plus system links through VSCU and OSCU for those on an invoicing or ERP system.
Accounting software such as Zoho Books, QuickBooks Online or Xero fits when bookkeeping is the main need. Zoho publishes a free plan in Kenya for businesses under KSh 5 million in annual revenue.
Stock tools such as Zoho Inventory fit when stock is the pain and the accounts are already fine.
An ERP such as Odoo, ERPNext, Navigate, Business Central or SAP Business One fits when sales, stock and accounts must work as one. Navigate publishes this guide and is one of them.

Plan for local conditions

Internet. Ask what works offline and test it. Keep a backup connection, such as a mobile data line, for key tills.
Power. Keep phones and tablets charged, and consider a small battery backup for your counter.
Phones. Field staff may do everything on a phone. Test on the phones they really own, not a new one in the office.
Language. Choose software that your frontline staff can read easily.
Mobile money. Keep a separate business till or paybill, so that your records are not mixed with personal money.
Data protection. You hold customer and staff data. Limit who can see it, use strong passwords, and ask your vendor where backups are kept and how you would get your data out.

People matter more than software

Most digital projects fail because people keep their old habits. Explain why the change matters. Name one owner who has authority to decide. Train two champions who can help others. Set a date when the old notebook stops being used, then stick to it.

Expect a slow first month. Staff will be slower before they become faster. Keep checking the numbers against reality, particularly stock and cash.

Questions to ask any vendor

What will it cost in year three with our real number of users and branches?
Who helps us when something goes wrong, and when are they available?
What works without a connection?
How do we get our data out if we leave?
Can we speak to a business like ours that uses this?

Where Navigate may not fit

Navigate may be more than a very small business needs. If you have a few sales a day and one person doing everything, start with something simpler.
Most Navigate screens need an internet connection. Where connectivity is very poor, test this before you commit.
Navigate's interface is in English, Kiswahili and French, so staff working in other languages may struggle.

Frequently asked questions

What should a small business digitise first?

Begin with whatever is costing you the most. For most trading businesses, that means recording every sale and receipt in one place. Then move to stock and accounts.

How much should an SME spend on going digital?

We have no reliable benchmark to give you. A better test is to estimate what errors, lost stock and wasted hours cost you each month, and make sure the total cost of a tool is clearly lower.

Is cloud software safe for a small business?

It can be safer than one office computer with no backup, but it depends on the vendor and your habits. Use strong passwords and two-step sign-in where offered, limit access and ask about backups.

Do we need an ERP to digitise?

No. Many small businesses do well with a simple tool or two. Consider an ERP when sales, stock and accounts are closely linked and keeping them apart is causing errors.

What about staff who are not comfortable with computers?

Begin with the tasks they do daily, on a device they know, and in their language if possible. Pair them with a champion. Most people pick up a few repeated steps quickly with support.

Sources

Published by Navigate, which is one of the products discussed. Last reviewed 31 October 2026. Features and prices change: check current pricing.