(NAIROBI, KENYA) – KCB Group will acquire a 22.23% stake in digital payments company Pesapal, according to a disclosure by Tanzania’s competition regulator.
The Fair Competition Commission (FCC) revealed the stake size as it reviews the transaction, which was first announced by KCB in November 2025.
The bank said at the time that it had signed an agreement to acquire an undisclosed minority stake in Pesapal, which operates in Kenya, Uganda, Tanzania, Rwanda and Zambia.
The FCC notice, published on 21st August, says the deal involves “acquisition by KCB Group Plc of 22.23% of the entire issued share capital of Pesapal Limited, resulting in the acquisition of indirect control over Pesapal Tanzania Limited.”
The value of the transaction has not been disclosed. However, KCB’s latest annual report shows that Pesapal owed the lender KES 1.2 billion ($9.27 million / GBP 6.93 million) at the end of December 2025.
The acquisition requires scrutiny in Tanzania because buying the stake in the Kenyan parent company would give KCB indirect control over Pesapal Tanzania Limited.
The deal represents a change in direction for KCB, moving the bank from traditional banking towards platform-based financial services. It also reflects a wider trend of large lenders investing in payments and data as future sources of growth.
The move follows KCB’s acquisition of a 75% stake in Riverbank Solutions, a Nairobi-based digital payments company that builds revenue collection and payments infrastructure for banks, government agencies and retailers.
Pesapal provides payment and business management solutions to customers across retail, hospitality and travel, petroleum, manufacturing and business-to-business services.
The transaction will combine KCB’s banking operations with Pesapal’s digital payments business. KCB expects the deal to strengthen its digital capabilities and expand services to small and medium-sized enterprises (SMEs).
“Through this transaction, we seek to further build our digital capabilities, leveraging Pesapal’s cutting-edge technology, footprint and agility, enabling customers and SMEs to benefit from simplified, secure and scalable payment tools,” said Paul Russo, KCB Group CEO, in the annual report.
KCB already operates in Tanzania through KCB Bank Tanzania, its wholly-owned commercial banking subsidiary.
The group first disclosed the planned investment on 3rd November 2025, stating that the transaction was subject to customary conditions, including regulatory approvals.
The bank said the investment would allow it to use Pesapal’s technology, regional reach and agility while combining payments, financing and business tools to support SMEs.
KCB’s investment in Pesapal forms part of a broader effort by the banking group to expand its digital and non-traditional financial services.
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 KES 1.44 billion ($11.12 million / GBP 8.32 million) to former owners including Nick Mwendwa, who previously served as Football Kenya Federation president.
The deal took place during the same period in which KCB sold its entire stake in National Bank of Kenya (NBK) to Nigeria’s Access Bank.
Mr Russo said the deals reflected the group’s commitment to increasing focus on core growth markets and redeploying capital “where returns are strongest” to power growth and reward shareholders.
KCB completed the acquisition of the 75% shareholding in Riverbank Solutions on 19th December 2025, but no revenues and profits were consolidated into the group at year-end.
The group said the revenues were considered immaterial to the financial statements.
KCB said that if the acquisition had occurred at the start of last year, the revenue and loss before tax for the year ended 31st December 2025 would have been KES 248 million ($1.92 million / GBP 1.43 million) and KES 212 million ($1.64 million / GBP 1.22 million) respectively.
KCB said the acquisition of Riverbank was part of an ongoing strategy to increase innovation in digital MSME offerings, focusing on transaction and payment services, instant digitised lending, provision of business management tools and offering non-banking solutions such as business training.
“The transaction will help the group accelerate its strategy to interconnect with partner platforms and fintechs to offer services such as virtual wallets and payment APIs. This will see KCB consolidate its agency banking channels into one platform,” said KCB.