The Fair Competition Commission (FCC) of Tanzania has disclosed that Kenya Commercial Bank (KCB) Group will acquire a 22.23 percent stake in Pesapal, a digital payments service provider operating in multiple East African countries. This development comes after KCB announced in November 2025 that it had signed an agreement to acquire an undisclosed minority stake in Pesapal. The acquisition is part of KCB's strategy to expand its fintech capabilities and compete in the growing payments market.
The deal, whose value has not been disclosed, marks a strategic shift for KCB from traditional banking to platform-based financial services. Pesapal offers payment and business-management solutions to customers across various sectors, including retail, hospitality, and travel. The acquisition will bring together KCB's banking operations and Pesapal's digital payments business, enabling the bank to strengthen its digital capabilities and expand services to small and medium-sized enterprises (SMEs).
According to KCB Group CEO Paul Russo, the transaction will enable the bank to leverage Pesapal's technology, regional footprint, and agility to offer simplified, secure, and scalable payment tools to customers and SMEs. The acquisition requires competition scrutiny in Tanzania because the purchase of the stake in the Kenyan parent would result in indirect control over Pesalink Tanzania. KCB is already active in Tanzania through its wholly-owned commercial banking subsidiary, KCB Bank Tanzania.
The FCC notice, published on August 21, revealed that the acquisition would result in KCB Group Plc acquiring 22.23 percent of the entire issued share capital of Pesapal Limited, giving it indirect control over Pesapal Tanzania Limited. This development provides clarity on the stake size that KCB is seeking in Pesapal, which was previously undisclosed. The acquisition is subject to customary conditions, including regulatory approvals.
KCB's investment in Pesapal is part of a wider push by the banking group to expand its digital and non-traditional financial services capabilities. The group currently has four non-banking subsidiaries—KCB Bancassurance Intermediary, KCB Investment Bank, KCB Asset Management, and Riverbank Solutions. In 2025, KCB completed the acquisition of a majority stake in Riverbank Solutions, paying Sh1.44 billion to former owners.
The deal comes amid a separate disclosure in KCB's latest annual report showing that Pesapal owed the lender Sh1.2 billion at the end of December 2025. KCB's acquisition of a 75 percent stake in Riverbank Solutions, a Nairobi-based digital payments company, was completed on December 19, 2025. The group said the revenues from Riverbank Solutions were considered immaterial to the financial statements.
KCB's push into fintech is driven by its strategy to interconnect with partner platforms and fintechs to offer services such as virtual wallets and payment APIs. The acquisition of Pesapal's stake will help the group accelerate its strategy to consolidate its agency banking channels into one platform. The deal reflects the group's commitment to increasing focus on core growth markets and redeploying capital where returns are strongest to power growth and reward shareholders.
Key points
- KCB Group to acquire 22.23 percent stake in Pesapal
- The acquisition is part of KCB's strategy to expand its fintech capabilities
- The deal will enable KCB to strengthen its digital capabilities and expand services to SMEs
