Small businesses across Kenya, Uganda, and Tanzania can now manage sales, inventory, payments, and taxes through a single digital platform, thanks to a new partnership between fintech firm Pesapal and POS provider RACK.
The collaboration aims to replace outdated systems—such as handwritten receipts, manual inventory logs, and unlinked payment channels—that many small and medium enterprises (SMEs) in the region still rely on.
“This is more than a partnership—it’s a solution to one of East Africa’s most pressing business challenges: making it easier to start, run, and scale a business,” said Pesapal CEO Agosta Liko.
The RACK POS system provides end-to-end functionality, including sales tracking, inventory management, petty cash control, and business performance monitoring. It is available on both web and Android platforms, allowing entrepreneurs to manage operations remotely.
According to the International Finance Corporation (IFC), over 80% of East Africa’s 30 million SMEs still operate informally, using paper-based systems that limit efficiency, increase errors, and restrict access to credit.
Liko emphasized that within six months of using RACK POS, SMEs can build a verified digital transaction history, making them eligible for business credit from Pesapal.
“This is not just digitization—it’s financial inclusion in action,” he added. “We’re bringing structure, clarity, and visibility to businesses that have long operated in the shadows.”
Ferdinand Eloto, Co-Founder and Team Lead at RACK, noted that the cloud-enabled system is designed to simplify daily operations, enhance record-keeping, and provide business insights that drive growth.
The shift to digital records is expected to help SMEs access funding and scale more effectively.
