KCB Deepens East African Footprint with Strategic Investment in Pesapal

Kenya’s largest commercial bank by assets, KCB Group, is set to acquire a significant 22.23% stake in Kenyan payments company Pesapal, according to Tanzania’s Fair Competition Commission (FCC). This transaction, first announced in late 2025, will give KCB indirect control over Pesapal’s Tanzanian subsidiary and further expand the bank’s presence across East Africa.

The deal represents a key step in KCB’s broader strategy to move beyond traditional banking services into payments and business software solutions. Pesapal operates in multiple countries including Kenya, Uganda, Tanzania, Rwanda and Zambia, providing businesses with payment acceptance tools that include cards, mobile money and bank transfers.

KCB first disclosed the investment in November 2025 as part of a plan to support payment and business management solutions for small and micro enterprises. The acquisition complements KCB’s previous purchase of a 75% stake in Riverbank Solutions, another Kenyan payments provider, for $15.4 million.

According to the FCC, this transaction will result in “indirect control” over Pesapal Tanzania Limited, which is licensed by the Bank of Tanzania as a payment service provider. The regulator has initiated a review process to assess whether the acquisition could substantially lessen competition in any relevant market in Tanzania.

The purchase price for the 22.23% stake remains undisclosed, and KCB has not publicly confirmed completion of the transaction beyond initial regulatory filings. While the deal awaits final approval, it underscores KCB’s commitment to expanding its merchant payments business across East Africa through strategic acquisitions.