Abstract: The purpose of the study was to analyze determinants of methods of payments on financial performance of small and medium enterprises in Kitale. The study was guided by the use of three theories, namely Theory of planned behavior (TPB), the Technology acceptance theory (TAM) and Diffusion of innovation theory (DOI). The study is a descriptive survey of small and medium enterprises in Kitale, with the sample population comprising all the 1510 registered small and Medium enterprises in the area that have been operating for a period of three or more years, the selection was using stratified random sampling.