DAVID OCHIENG ADEDE2026-06-082025-08https://repository.mua.ac.ke/handle/123456789/2313This study investigated the key determinants influencing the development and adoption of ecommerce among Small and Medium Enterprises (SMEs) within Dagoretti North Sub-County, Nairobi, Kenya. Although digital commerce continues to reshape modern business landscapes, SMEs in this region encounter a variety of persistent challenges that limit their effective engagement with the digital economy. The research was guided by four core objectives: to examine technological factors, financial constraints, market and customer-related dynamics, and legal and regulatory conditions that affect the uptake and growth of e-commerce. The study was grounded in two theoretical frameworks Technological Determinism Theory, which emphasizes the role of technology in shaping societal change, and Protection Motivation Theory, which explains how perceived threats and coping mechanisms influence behavioral responses toward technology adoption. A descriptive research design was adopted to systematically capture the current status of e-commerce adoption among SMEs. Data was collected using structured questionnaires distributed to owners and managers of SMEs. A stratified random sampling technique was used to ensure representation across different business categories from a target population of 67 registered SMEs in the sub-county. Data analysis was performed using descriptive statistics, specifically frequencies and percentages, to summarize and present the findings. The results revealed that technological enablers such as access to affordable digital tools, reliable internet connectivity, and employees’ digital competencies significantly support e-commerce engagement. However, technological challenges including cybersecurity threats and inadequate technical support were found to hinder progress. On the financial front, lack of access to SME-specific funding options and the high costs associated with adopting secure online payment platforms were major obstacles. Market-related factors such as evolving customer preferences, the effectiveness of digital marketing strategies, and competitive positioning were shown to have a direct influence on ecommerce performance. In the legal and regulatory context, many SMEs expressed difficulty in complying with complex regulations, despite acknowledging the importance of consumer protection, data privacy, and legal trust-building mechanisms in digital business environments. The study concludes that a multifaceted interplay of technological, financial, mart, and legal factors either accelerates or restricts the successful adoption of e-commerce among SMEs in the study area. Based on these findings, it recommends several interventions: improved digital infrastructure, the introduction of SME-friendly financing models, expanded regulatory education programs, and comprehensive capacity-building initiatives to strengthen digital skills among SME stakeholders.Thesis