KCB Group, one of Kenya’s largest banks, is acquiring a minority stake in digital payments provider Pesapal, strengthening its position in the fintech industry.
The bank has announced its intentions to acquire an undisclosed minority stake in the Kenyan fintech, subject to regulatory approvals, including the Competition Authority of Kenya, and the Central Bank of Kenya (CBK).
This marks its second acquisition of a fintech this year, after acquiring Riverbank Solutions Limited, a fintech firm associated with Nick Mwendwa, former president of the Football Kenya Federation, earlier this year.
‘The investment sets the stage for 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 lender said in a notice signed by company secretary Bonnie Okumu.
Founded in 2009 by entrepreneur Agosta Liko, Pesapal processes payments for thousands of businesses across Kenya, Uganda, and Tanzania, operating under a payment service provider licence from the CBK.
The platform enables merchants to accept both card and mobile money payments-online and in-store-with integrations for Visa, Mastercard, American Express and M-Pesa.
Often described as a backbone of e-commerce and service payments in East Africa, Pesapal supports a wide range of industries including hospitality, education and transport.
KCB, which already runs one of Kenya’s largest agent and merchant networks, expects that its partnership with Pesapal will cement its foothold in the merchant acquiring and SME payments sector.
The move aligns with KCB’s broader shift towards fintech-driven growth, following strong 2024 results. The bank’s profit after tax rose 64.9 percent to Sh61.8 billion, buoyed by solid revenue growth across all segments.
Non-interest income increased by 16.5 percent Sh67.5 billion, driven largely by gains in foreign exchange trading.