NAIROBI — A new partnership between fintech firm Pesapal and Kenyan startup RACK could mark a turning point for small businesses across East Africa, many of which still rely on handwritten receipts and manual inventory logs.
The two companies say their goal is to help small and medium-sized enterprises (SMEs) modernise how they operate from sales and payments to bookkeeping and tax records using a single digital platform.
“Ours is not just a partnership,” said Agosta Liko, Pesapal’s Chief Executive. “It’s a response to one of the most urgent problems faced by businesses in East Africa the need for a simpler, faster way to start, run and grow.”
The new system, known as RACK POS, is designed to give small business owners greater control over daily operations. It runs on both web and Android platforms, allowing users to manage transactions, stock, cash flow, and business performance from their phones or laptops.
Ferdinand Eloto, RACK’s co-founder, said the software aims to bring structure to what is often a chaotic process.
“Our cloud-enabled solution is built to help businesses keep better records and understand how they’re doing day to day,” he said.
The move comes at a critical time. According to the International Finance Corporation (IFC), more than 80% of East Africa’s 30 million SMEs still operate informally. Most do not keep proper records, and many struggle to access credit or scale up due to a lack of financial history.
That gap is what Pesapal and RACK hope to close. Once signed up, businesses will begin generating digital records that could help them qualify for loans, including financing from Pesapal itself.
“Within six months, a business can build a credible track record,” said Liko. “That kind of transparency makes it easier to access credit something that’s out of reach for many SMEs right now.”
The companies say they are aiming to bring financial inclusion to a segment long overlooked by banks and mainstream lenders. By offering digital alternatives to pen-and-paper systems, they hope to remove one of the biggest barriers to growth for small businesses in Kenya, Uganda and Tanzania.
The RACK POS rollout is already under way, with both firms expressing optimism that digital tools can make a real difference for entrepreneurs working at the grassroots.
As Liko put it, “This isn’t just about software. It’s about giving small businesses a fighting chance.”
