Kenyan’s need to use information systems in order to increase efficiency of operations within their enterprises. Survival of businesses to beat competition depends on their ability to use information systems. Those SMEs that use information systems are able to compete with their rivals in larger firms. Information systems allow SMEs to cut down costs, make better products and offer quality service to customers. SMEs that have integrated information systems are able to cut down cost and provide better services to customers. SMEs in developed economies have exploited the full benefits of information systems unlike those in developing nations like Kenya. This is so because of the slow development of information systems within SMEs in developing nations. There are a number of challenges experienced by SMEs in developing countries that impedes the adoption and use of information systems. These challenges include; poor ICT infrastructure, lack of management support, inadequate user expertise and poor information storage. This study sought to investigate how these challenges affect performance of SMEs in Embu County, Kenya. The study targeted 250 SMEs with a total of 400 employees. Stratified random sampling was employed to select 80 employees from the targeted population. Primary data was collected using closed and open-ended structured questionnaires with reliability coefficient of 0.6 and above. Data was collected using drop and pick method. It was analyzed using both descriptive and inferential statistics using SSPP 20. Descriptive analyses were done using tables, graphs, mean and standard deviation. Inferential analysis was based on multiple regression models. The study revealed that SMEs had adequate ICT infrastructure that enabled them communicate effectively with their stakeholders. The study also found that staff had adequate Skills and knowledge in ICT that enabled them use ICT tools efficiently. The study concluded that ICT infrastructure, Management support,...