KCB Group is set to acquire a 22.23% stake in Pesapal, a leading East African digital payments company. The deal, first announced in November 2025, has been under regulatory review since then. According to Tanzania's Fair Competition Commission (FCC), the acquisition will give KCB indirect control over Pesapal Tanzania Limited. The FCC published its notice on August 21, marking a significant step towards the completion of the transaction.
Pesapal operates in multiple countries, including Kenya, Uganda, Tanzania, Rwanda, and Zambia. The company's Tanzanian arm is licensed by the Bank of Tanzania as a payment service provider. Pesapal offers a range of payment and business-management tools for companies, handling card payments, mobile money, and bank payment acceptance. The company's services cater to various industries, including retail, hospitality, travel, petroleum, and manufacturing.
The acquisition is subject to regulatory approval, with the FCC investigating whether the deal could harm competition in any Tanzanian market. The public participation window for the deal closed on September 4, after gathering input from stakeholders. KCB Group has not disclosed the price tag for the acquisition. The deal is part of KCB's strategy to expand its financial services platform, combining banking, payments, and business tools.
This is not KCB's first move into fintech, as the bank had previously acquired a 75% stake in Riverbank Solutions, a Nairobi-based digital payments company. The deal, worth KES 2 billion, enabled Riverbank to build payment and revenue collection infrastructure for banks, government agencies, and retailers. The acquisition of a stake in Pesapal further solidifies KCB's commitment to becoming a broader financial services platform.
Interestingly, Pesapal owed KCB KES 1.2 billion as of the end of December 2025, according to KCB's latest annual report. This financial detail was disclosed separately from the acquisition news. KCB CEO Paul Russo mentioned in March that the bank was still waiting for regulatory approval to complete the acquisition. The deal will give KCB deeper access to Pesapal's merchant network across East Africa.
The acquisition aligns with KCB's long-term strategy to serve small and medium-sized businesses. The bank views this segment as central to its growth plans. With Pesapal's tools and network, KCB aims to enhance its services for these businesses. The deal is expected to expand KCB's presence in the East African digital payments market.
The FCC's investigation is ongoing, and KCB has not confirmed whether the 22.23% stake has actually changed hands yet. If approved, the acquisition will mark a significant milestone in KCB's expansion into fintech. The deal will also enable KCB to offer a wider range of services to its customers, further solidifying its position in the East African financial services market.
Key points
- KCB Group to acquire 22.23% stake in Pesapal for undisclosed price.
- Acquisition pending regulatory approval from Tanzania's Fair Competition Commission.
- Deal to enhance KCB's services for small and medium-sized businesses in East Africa.
