Kiosk in Nairobi's CBD [Photo/Kenya Today]

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Mastercard has launched a new digital ordering system for small kiosks owners in Nairobi called 'Koinect'.

Koinect enables owners to order and pay for products from wholesalers through SMS. As a result the orders will be digitally recorded through the phone thus granting kiosk owners access to micro loans as well.

Koinect is currently being used by more that 1,000 micro-businesses in Kibera, Kawangware and Kariobangi. 

The digital system has partnered with Kaskazi and Diamond Trust Bank (DTB) overseeing payments made between the kiosk owners and the wholesalers. 

“Kiosk owners are the heartbeat of their communities – they source the supplies needed to get by. Learning that product sourcing, tracking inventory and access to flexible, short-term credit are major pain points, we set out to develop Kionect,” said Michael Elliott, vice president Mastercard Labs for Financial Inclusion in Nairobi.

According to Juliet Ongwae, Chief Innovation Officer of Musoni Kenya, the fact that kiosk owners can now access basic financial services can only spell potential for business expansion.