In brief: KCB’s fintech push
- KCB Group agreed to acquire a minority stake in Pesapal, a leading East African payments company.
- The deal, announced on October 31, 2025, aims to expand digital payments for small and micro businesses across Kenya.
- It follows KCB’s 75 percent acquisition of Riverbank Solutions in March 2025, reinforcing a deliberate pivot into payments technology.
- Completion is subject to approvals from the Central Bank of Kenya and other regulators.
KCB Group moves deeper into fintech with a minority stake in Pesapal
KCB Group will take a minority position in Pesapal to fast-track digital payments for Kenya’s small and micro enterprises and extend its regional reach. Announced on October 31, 2025, the investment awaits regulatory clearance and builds on KCB’s earlier buyout of a controlling stake in Riverbank Solutions, signaling a clear strategy to anchor core banking with modern payment rails.
KCB said the transaction is intended to spur innovation in merchant services and digital collections for SMEs while creating long-term value for both companies’ shareholders. The move aligns with the bank’s broader technology agenda and a growing need for tighter IT integration between banks and third‑party fintech platforms that handle day-to-day commerce.
What the deal unlocks for KCB’s digital payments play
As Kenya’s largest bank by assets, KCB has been steadily building a payments stack that meets customers where they transact, whether that is in-store, online, or on mobile wallets. Partnering with Pesapal gives KCB immediate access to a mature merchant network and established integrations across cards and mobile money. For SMEs, that likely translates to easier onboarding, more reliable settlement, and better tools for reconciliation and analytics.
In practical terms, merchants could benefit from tighter links between point-of-sale systems, e-commerce checkouts, and bank cash management. For teams that want to automate this plumbing without heavy engineering, no‑code connectors like Make.com can tie payment events to inventory, invoicing, and CRM so back-office work does not slow sales.
The transaction remains subject to the Central Bank of Kenya’s approval, and any other consents required under Kenya’s competition and financial services laws. No changes to customer terms are expected before closing.
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Pesapal’s role in East Africa’s payments infrastructure
Founded in 2009 by Agosta Liko, Pesapal operates across Kenya, Uganda, Tanzania, Rwanda, Zambia, and Malawi. The company provides payment processing, e-commerce gateways, and Android-based POS terminals for in-person acceptance. It integrates with mobile money services such as M‑Pesa and Airtel Money, and with international card networks including Visa, Mastercard, and American Express.
Pesapal has been licensed by the Central Bank of Kenya as a Payment Service Provider since 2021. With thousands of merchants already on its rails, the company sits at the heart of everyday commerce in East Africa and is a regular touchpoint in Kenya’s digital payments evolution.
Industry view and why the timing matters
The Pesapal stake follows KCB’s March 2025 acquisition of 75 percent of Riverbank Solutions for a reported KES 2 billion. That deal added card issuing, switching, and value-added services to KCB’s toolkit, while years of vendor collaboration de‑risked the integration. The Pesapal move layers on merchant acceptance and omnichannel checkout, rounding out a strategy that places KCB at the center of the payment flow rather than just at the end of it.
For Pesapal, backing from a tier-one bank can accelerate product development, deepen liquidity and settlement capabilities, and open doors to larger enterprises. For KCB, the partnership adds distribution and speed in a market where payments and banking increasingly converge. It also offers a defensible route to serve SMEs at scale, a segment that drives jobs and GDP but often struggles with fragmented tools and costly payment acceptance.
If approvals land on time, both sides are poised to start integration work that connects merchant acquiring, online checkout, and bank treasury services. That would give SMEs a more complete set of tools, reduce friction at the till and in the ledger, and allow KCB to compete more directly with full‑stack fintech players in Africa’s ongoing fintech expansion.
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FAQs
What has KCB Group announced?
KCB Group plans to acquire a minority stake in Pesapal to strengthen digital payments for SMEs in Kenya and the wider region, subject to regulatory approvals.
Why is KCB investing in Pesapal?
The investment advances KCB’s strategy to own more of the payments value chain, complementing its 2025 acquisition of Riverbank Solutions with a strong merchant acceptance platform.
What does this mean for SMEs?
SMEs should see more reliable checkout options, faster settlement, and better integration between point of sale, online stores, and bank accounts once the deal closes and systems are aligned.
Who is Pesapal?
Pesapal is an East African payments firm founded in 2009 by Agosta Liko. It operates in six markets and supports cards and mobile money, including M‑Pesa, Visa, and Mastercard.
What approvals are required?
The deal needs clearance from the Central Bank of Kenya and may require other regulatory consents before it can close.
Will fees or services change for current customers?
No immediate changes are expected before closing. Any updates to pricing or features would be communicated by KCB or Pesapal after required approvals.
How does this relate to Riverbank Solutions?
Riverbank strengthens KCB’s issuing and processing stack, while Pesapal adds merchant acceptance and omnichannel checkout. Together they broaden KCB’s end‑to‑end payments capability.
