KCB Group Acquires Stake in Pesapal to Boost Digital Payments
TLDR
- KCB Group Plc plans to acquire a minority stake in Pesapal Limited, a Central Bank of Kenya–licensed payment service provider
- The agreement, disclosed on October 31, 2025, underscores KCB’s ambitions to strengthen its foothold in digital payments
- Pesapal offers online and in-person payment solutions tailored to small businesses, merchants, and institutions
KCB Group Plc plans to acquire a minority stake in Pesapal Limited, a Central Bank of Kenya–licensed payment service provider, in a deal that marks a major step in its digital transformation strategy.
The agreement, disclosed on October 31, 2025, underscores KCB’s ambitions to strengthen its foothold in digital payments and financial innovation across East Africa.
Pesapal offers online and in-person payment solutions tailored to small businesses, merchants, and institutions, providing payment gateways, point-of-sale systems, and integrations that support the region’s growing SME economy.
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Key Takeaways
The investment aligns with KCB’s broader strategy to expand its digital ecosystem and deepen engagement with small and medium-sized enterprises, a vital growth engine for East Africa. By pairing KCB’s banking infrastructure with Pesapal’s agile technology platform, the two firms aim to accelerate financial inclusion and improve access to modern payment solutions. While the financial details remain undisclosed, the transaction is pending regulatory approvals from the Central Bank of Kenya and other relevant authorities. Once approved, it will give KCB a stronger presence in the fast-evolving fintech landscape, positioning it to compete more directly with regional payment leaders such as Flutterwave, Cellulant, and Safaricom’s M-Pesa. This move follows KCB’s recent investments in digital banking infrastructure and reflects the growing convergence between traditional banks and fintechs in shaping the future of Africa’s financial services ecosystem.
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