This study sought to investigate the effects of bookkeeping on the growth of small and medium business enterprises in Kabarnet Town. The study objective was to find out how books are kept in SMEs, analyze the growth of small and medium enterprises and to establish the relationship between bookkeeping and growth of SMEs in Kabarnet Town. The study was based on a descriptive survey design and targeted all SMEs operators in Kabarnet town. A sample of 72 respondents was selected through stratified random sampling techniques. The data was analyzed using descriptive statistics and analyzed using percentages. The results were presented using tables and figures. The study findings show that many SME operators in Kabarnet town maintain sales record books using the double entry system. The study also shows that book keeping positively enhanced SMEs growth as measured by profitability and increased business expansion in Kabarnet town. SMEs and bookkeeping could be used to monitor business transactions although many traders do not use it for this purpose. Therefore, bookkeeping can be used as a tool for monitoring business transaction in SMEs. The findings of this study could provide useful information that will help the business community in Kabarnet town to appreciate the role of book keeping in their businesses.