KCB Announces Plan to Acquire Minority Stake in Pesapal

KCB Group PLC has announced plans to acquire a minority stake in Pesapal Limited, a leading digital payments company licensed by the Central Bank of Kenya (CBK). The move marks a significant step in KCB’s strategy to strengthen its presence in the fast-growing financial technology sector.

In a statement issued on Friday, October 31, 2025, KCB Group said it had entered into an agreement to acquire the stake, subject to regulatory approval. The transaction, which received the green light from the Capital Markets Authority (CMA) for public disclosure, is still pending final approval from the CBK and other relevant regulators.

“The investment sets the stage for the development of innovative payment and other related solutions for Kenya’s small and micro enterprises, enhancing value for shareholders of both Pesapal and KCB,” the bank said in the announcement.

Pesapal, founded in 2009, is a licensed payment service provider (PSP) offering integrated digital payment solutions for businesses, consumers, and merchants across East Africa. The company enables electronic transactions through card, mobile money, and online payment platforms and has become one of the region’s key players in the cashless economy.

The acquisition aligns with KCB Group’s broader digital transformation agenda, which focuses on diversifying revenue streams and expanding non-interest income through partnerships with fintech innovators. The bank has in recent years accelerated its investments in digital ecosystems, mobile banking, and cross-border payment solutions to tap into Africa’s growing digital economy.

The deal is being advised by KCB Investment Bank Limited as the transaction adviser and DLA Piper Africa, Kenya (IKM Advocates) as legal counsel.

According to KCB Group’s Board Secretary and General Counsel, Bonnie Okumu, the transaction demonstrates the bank’s commitment to supporting Kenya’s digital financial infrastructure while driving inclusion and innovation.

“The partnership with Pesapal represents our continued belief in the power of collaboration between traditional banking institutions and technology-driven companies,” she said.

Once completed, the investment is expected to create synergies between KCB’s large customer base and Pesapal’s digital network, enabling the delivery of seamless, secure, and affordable payment solutions to small and micro enterprises (SMEs) and consumers.

The proposed acquisition also comes amid heightened competition in Kenya’s digital payments space, with traditional banks and fintech startups racing to capture market share in mobile and online transactions.

KCB Group, which operates across seven countries in East and Central Africa, joins a growing list of African financial institutions investing in fintech partnerships to accelerate innovation and reach underserved segments.

The bank said it would provide further updates upon completion of the regulatory approval process.