In Brief: KCB’s FinTech Play

• KCB Group, Kenya’s largest bank, has announced an agreement to acquire a minority stake in Pesapal, a major East African payment technology company.
• The investment, announced on October 31, 2025, is aimed at boosting digital payment solutions for small and micro-enterprises (SMEs) in Kenya.
• This move follows KCB’s acquisition of a 75% stake in Riverbank Solutions in March 2025, signaling a clear strategy to deepen its fintech capabilities.
• The deal is still pending regulatory approvals, including from the Central Bank of Kenya (CBK).

KCB Group Takes Bold Step into FinTech for SMEs

In a significant move that signals a deeper push into the digital finance world, KCB Group has announced it’s set to acquire a minority stake in Pesapal, one of Kenya’s largest payment technology firms. The deal, which is still subject to regulatory green lights, looks to turbocharge digital payment options for the small and medium-sized businesses that form the backbone of Kenya’s economy.

In an official statement, Bonnie Okumu, the Group General Counsel and Company Secretary at KCB Group, confirmed the news. “We are delighted to inform our shareholders and the investing public that KCB Group Plc (KCB) has…entered into an agreement to acquire a minority stake in Pesapal Limited.” The bank made it clear that the investment is aimed squarely at “fostering innovation in digital payment solutions and strengthen support for Kenya’s small and micro enterprises,” according to the statement dated October 31, 2025.

What the Deal Means for KCB’s Digital Payments Ambitions

KCB Group, already Kenya’s largest bank by assets, isn’t just dipping its toes in the water. This partnership with Pesapal is a strategic cannonball into the deep end of digital payments. By teaming up with a company that has a strong, established network, KCB is positioning itself to expand its digital footprint in a big way. The move shows a clear understanding of why IT integration is crucial for modern financial institutions.

Okumu added that the investment is about creating real value. “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,” she stated. For SMEs, this could mean more integrated and seamless ways to handle their money, from point-of-sale systems to online checkouts. For those looking to streamline their business processes even further, no-code platforms like Make.com are becoming essential tools, allowing businesses to connect their payment systems to other operational software without writing a single line of code.

Of course, the deal isn’t done just yet. It’s waiting for the official nod from the Central Bank of Kenya (CBK) and other regulatory bodies, a standard step for transactions of this nature.

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Pesapal at the Core of East African Payments Innovation

Founded back in 2009 by Agosto Linko, Pesapal is no small player. The company has built a robust presence not just in Kenya, but also in Uganda, Tanzania, Malawi, Rwanda, and Zambia. It offers a whole suite of services, including digital payment processing, point-of-sale (POS) systems, and e-commerce solutions that are vital for modern businesses.

As a licensed payment service provider by the CBK, Pesapal processes payments from all the major players, including M-Pesa, Visa, Mastercard, and American Express. This wide net of integrations has made it a go-to solution for thousands of merchants. This move by KCB taps directly into a well-oiled machine that is already central to Kenya’s digital payments revolution.

Industry Perspective Why KCB is Investing Now

This isn’t KCB’s first rodeo. The investment in Pesapal follows its acquisition of a 75 percent stake in Riverbank Solutions back in March 2025. That deal, valued at KES 2 billion ($15.4 million), was a clear indicator of KCB’s deliberate strategy to build a strong portfolio in payments technology. This pattern suggests the bank is betting big that the future of finance lies in owning the platforms that move money, a strategy detailed in how fintech is making it work for legacy banks.

At the time of the Riverbank acquisition, KCB was confident in its choice, stating, “Having worked closely with them for the last 12 years, we are confident that [Riverbank] are an excellent fit for our business and will add significant value to the Group.” Now, the Pesapal deal seems to be the next logical step.

Elijah Ntongai, a business editor at TUKO.co.ke, noted the potential upside for Pesapal. He writes, “The partnership with KCB is expected to bolster its capacity to scale operations and develop new digital tools for businesses and consumers.” It seems to be a win-win, where KCB gains a stronger fintech arm and Pesapal gets the resources of a banking giant to fuel its next phase of growth. As the lines between banking and tech continue to blur, this partnership could be a model for how traditional institutions can innovate and stay relevant in Africa’s fintech gold rush.