KCB Group Expands Fintech Footprint with Strategic Investment in Pesapal

Kenya, 3 November 2025 - KCB Group Plc has announced a strategic move to acquire a minority stake in Pesapal Limited, one of East Africa’s leading digital payment service providers.

The deal, unveiled on Monday, reinforces KCB’s broader ambition to strengthen its position in the fast-growing fintech space and build a comprehensive ecosystem around digital payments and financial technology.

This latest acquisition comes just eight months after KCB finalised the purchase of a 75 percent controlling stake in Riverbank Solutions Limited, a Kenyan fintech company specializing in digital payment processing and financial technology solutions.

Together, the two investments signal a clear and deliberate effort by KCB to evolve from a traditional bank into a platform-based financial services provider with a strong presence across the region’s rapidly digitalizing economy.

KCB Group Chief Executive Officer Paul Russo said the move reflects the bank’s long-term strategy to leverage technology in expanding access to financial services and delivering innovative digital products to customers across Africa.

“We are building new digital capabilities that will enable us to offer customer-centred, seamless, and secure financial solutions,” Russo said.

“The payments space across the region is showing the fastest growth, which presents a unique opportunity for us to innovate, deliver value for our shareholders, and strengthen our competitive edge.”

Russo added that the acquisition would help KCB deepen its engagement with both consumers and businesses by integrating payments into its broader digital banking strategy.

The goal, he said, is to create a “full-stack” ecosystem of digital products that serve diverse customer needs, from everyday retail transactions to large-scale corporate payments.

Founded in 2009, Pesapal is among East Africa’s most established digital payment platforms.

It enables individuals and businesses to make and receive payments online, via mobile, and at physical points of sale.

The company operates across Kenya, Uganda, and Tanzania, providing services to thousands of merchants in sectors such as hospitality, education, retail, and travel.

Pesapal’s technology connects various payment channels, including cards, mobile money, and online wallets, offering integrated solutions that make transactions faster, safer, and more accessible for both businesses and consumers.

In its statement announcing the investment, KCB Group said the partnership would pave the way for the development of new, innovative payment and financial solutions tailored for small and micro enterprises (SMEs). This aligns with the bank’s goal of driving financial inclusion through digital innovation, particularly among underserved segments of the economy.

"This collaboration sets the stage for the development of innovative payment and related solutions for Kenya’s small and micro enterprises,” the statement noted.

“It will enhance value for shareholders of both Pesapal and KCB while expanding opportunities for entrepreneurs to participate more effectively in the digital economy."

The transaction is subject to regulatory approvals, including clearance from the Central Bank of Kenya (CBK) and other relevant authorities.

Once completed, the deal is expected to give KCB Group a stronger foothold in the regional payments landscape, enabling it to tap into the fast-rising demand for secure, interoperable, and cross-border payment solutions.

The move mirrors a broader trend among leading African banks that are increasingly investing in or acquiring fintechs to stay competitive in the digital age.

For KCB, whose operations span seven countries across East and Central Africa, the partnership with Pesapal is expected to accelerate its digital transformation journey and support its vision of becoming a fully integrated financial services platform.

With digital payments continuing to outpace other segments of financial services growth, KCB’s latest fintech investment positions it strategically for the next phase of innovation in Africa’s banking sector.

The bank is betting that by combining its financial infrastructure with Pesapal’s technology-driven capabilities, it can deliver greater convenience, accessibility, and value to millions of customers across the region.