james wika 
Pesapal, a financial technology firm, has partnered with RACK, a cloud point-of-sale (POS) solution, to introduce a fully integrated business management solution for millions of small and medium businesses (SMEs) across Kenya, Uganda, and Tanzania.
The deal aims to simplify and digitize fundamental business activities for SMEs so that they can manage sales, stock, payments, and tax compliance from one place.
Agosta Liko, Pesapal CEO,said this partnership is about empowering the future leaders of business in Africa and ensuring that no entrepreneur gets left behind.
“With the RACK POS, we are not just providing technology – we are extending a lifeline,” Liko said.
The new product is designed to help the majority of African businesses overcome the challenge of inadequate digital infrastructure.
While they make up the bulk of East Africa’s economy, most SMEs remain informal and use manual stock-taking, handwritten receipts, and disconnected payment methods that limit their access to credit and hinder growth.
According to the International Finance Corporation (IFC), only 20–25 percent of SMEs in sub-Saharan Africa can access formal credit due to limited digital records and transaction histories.
Within six months of using the system, SMEs are expected to generate verifiable digital transaction data, making them eligible for business credit through Pesapal.
“This partnership brings structure, clarity, and visibility to businesses that have operated in the dark for too long. It’s not just about digitization; it’s financial inclusion in action,” Liko said.
The RACK POS solution provides comprehensive all-in-one functionality, seamlessly integrating sales tracking, inventory management, customer engagement tools, and diverse payment processing options.
Its robust e-commerce integration and mobile accessibility ensure businesses can synchronize online and in-store operations for real-time updates and enable remote management across web and Android platforms.
Furthermore, RACK POS supports multi-branch management, offers built-in customer relationship tools, provides real-time performance tracking, and facilitates growth enablement through credit profiling and access to financing.
Ferdinand Eloto, RACK’s Co-Founder and Team Lead, noted that having digital records allows SMEs to access credit and funding previously out of reach for many.
“Our partnership with Pesapal is a milestone occasion because it makes everyday business tools a gateway to East Africa’s SME ecosystem to financial inclusion, scale, and sustainability,” Eloto said.
The system also features mobile-first design, offline functionality, minimal hardware requirements, and tax compliance integration making it accessible to micro-enterprises.
