The study looked at the innovation traits that influenced SME (Small and Medium enterprises) adoption of cloud computing in Kampala, Uganda. In Kampala, Uganda, Small and Medium Enterprises (SMEs) made decisions to use cloud computing based on innovation characteristics. It was found out that: cloud computing enhanced innovations in their business (Mean = 3.78, St. Dev = .601), there was a complexity that comes with the use of cloud computing (Mean = 4.01, St. Dev = 1.180), cloud could not be easily be integrated into our existing IT infrastructure (Mean = 2.62, St. Dev = 1.032), there was Trialability (Trialability is the ease with which customers can try a new product or service) of the cloud computing systems was conducive in this business (Mean = 3.40, St. Dev = .921), there was no security (Mean = 2.73, St. Dev = .918), lack of privacy (Mean = 2.71, St. Dev = .790). Keywords: innovation characteristics, cloud computing, SMEs