KCB Group Plc, Kenya’s largest lender by assets, announced plans to acquire a minority stake in digital payments company Pesapal Limited, marking another strategic move by the bank to strengthen its foothold in the region’s fast-growing fintech sector.
In a statement, KCB said it had entered into an agreement with Pesapal to acquire the unspecified minority interest, subject to customary conditions and regulatory approval from the Central Bank of Kenya.
Pesapal, a licensed payment service provider, offers digital payment and e-commerce solutions across Kenya and several African markets. The company’s platform enables consumers and businesses to make and accept online and in-person payments through cards, mobile money, and bank transfers.
“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,” KCB said in the notice signed by Bonnie Okumu, Group General Counsel and Company Secretary.
The deal underscores KCB’s ongoing diversification strategy beyond traditional banking, as competition intensifies between financial institutions and fintech players over Africa’s booming digital payments ecosystem. Kenya, where mobile and online payments now dominate consumer transactions, remains one of the continent’s most advanced fintech markets.
Neither KCB nor Pesapal disclosed the financial details or the exact size of the stake to be acquired.
The investment follows similar moves by regional lenders to align with fintech disruptors as banks race to digitize operations and capture a share of Africa’s expanding e-commerce and SME payment markets.
In March this year, KCB Group acquired 75% of Riverbank Solutions, a fintech farm by Nick Mwenda to strengthen KCB Group’s distribution network across the region. Riverbank has been providing the bank with Agency Banking Solution since 2013 via its Zed 360 platform.