At a Glance
- KCB Group acquires a minority stake in Pesapal to expand digital payments reach.
- The deal strengthens KCB’s fintech portfolio amid rising regional demand for cashless solutions.
- Kenya’s largest lender bets on digital finance to drive future growth across East Africa.
KCB Group Plc, East Africa’s largest bank by assets, is deepening its push into financial technology with a minority stake acquisition in Pesapal Limited, one of Kenya’s top digital payment companies.
The deal, announced Monday, signals the bank’s intent to grow beyond traditional lending and gain a stronger foothold in the region’s fast-expanding digital payments space.
It marks KCB’s second fintech investment in less than a year, reinforcing its shift toward a technology-centered business model.
In March, KCB bought a 75% controlling stake in Riverbank Solutions Limited, another Kenyan fintech company specializing in digital payments and enterprise solutions. Both moves show a clear pattern: the Nairobi-based lender wants to be at the heart of Africa’s digital finance story.
Kenya’s Digital Payments Market Gains a Major Backer
The Pesapal transaction, which still requires approval from the Central Bank of Kenya, is expected to expand opportunities for cashless transactions and e-commerce across East Africa.
KCB said the partnership would help it design secure, scalable payment tools tailored to small and micro-enterprises.
“We are deepening our digital transformation agenda to create value through customer-focused, technology-led solutions,” said KCB Group CEO Paul Russo.
“Payments remain one of the fastest-growing sectors in the region, and this investment allows us to deliver integrated services that make life easier for businesses and consumers.”
Kenya’s digital economy is forecast to grow at double-digit rates through 2030, fueled by mobile money innovation and supportive regulations. With more consumers shopping and banking online, demand for fast and reliable digital payment solutions continues to climb.
KCB Bets on a Cashless Future
Founded in 2009, Pesapal operates in Kenya, Uganda, and Tanzania, providing online, mobile, and in-store point-of-sale systems to thousands of merchants.
Its platform connects card, mobile money, and QR code payments, making it a vital link in East Africa’s move toward a cashless economy.
For KCB, the investment strengthens its regional reach and signals how large banks are adapting to stay competitive in an industry reshaped by fintech startups.
Headquartered in Nairobi, KCB operates in seven countries and serves millions of customers in retail, corporate, and small-business markets.
With Pesapal in its portfolio, KCB is positioning itself not just as a lender, but as a central player in East Africa’s evolving digital financial ecosystem.
