KCB just announced it’s buying into Pesapal, here’s what you should know

KCB Group Plc has entered into an agreement to acquire a minority stake in Pesapal Limited, a move that marks the bank’s deepening interest in Kenya’s fast-growing digital payments space.

In a public announcement, KCB said the agreement will allow the lender to tap into Pesapal’s network and technology to develop innovative payment and related solutions for small and micro enterprises across Kenya.

“The investment sets the stage for development of innovative payment and other related solutions for Kenya’s small and micro enterprises, enhancing value for shareholders of both Pesapal and KCB,” the bank said in the notice signed by Bonnie Okumu, Group General Counsel and Company Secretary.

The transaction, which is subject to approval by the Central Bank of Kenya (CBK), was issued with the approval of the Capital Markets Authority (CMA). 

KCB Investment Bank will act as the transaction adviser, while DLA Piper Africa, Kenya (IKM Advocates) will serve as the legal adviser.

KCB is one of East Africa’s largest banking institutions, with operations in Kenya, Uganda, Tanzania, Rwanda, South Sudan, Burundi, and a representative office in Ethiopia.

As of mid-2025, the bank’s total assets exceeded Sh1.8 trillion, serving more than 30 million customers across the region. 

The group has been pursuing a digital-first growth strategy, with over 90% of transactions conducted outside physical branches through mobile, internet, and agency banking channels.

The move into Pesapal follows other strategic acquisitions, including the 2022 acquisition of Trust Merchant Bank (TMB) in the Democratic Republic of Congo, part of KCB’s effort to expand its footprint and diversify revenue streams across Africa.

Pesapal Limited, founded in 2009 by Agosta Liko, is a Kenyan fintech company providing secure online, mobile, and in-store payment processing solutions for businesses and individuals.

The company operates in Kenya, Uganda, Tanzania, Malawi, Rwanda, and Zambia, and supports multiple global and local payment methods, including Visa, Mastercard, American Express, and mobile money platforms such as M-Pesa.

Pesapal was formally licensed by the Central Bank of Kenya in April 2022 as a Payment Service Provider (PSP) under the National Payment System Act, 2011, allowing it to operate as a payments gateway and aggregator.

The firm’s Pesapal Switch platform connects merchants to multiple payment channels, while its Pesapal Sabi POS terminals are widely used by small and medium-sized enterprises (SMEs) to accept digital payments.

Kenya continues to cement its position as one of Africa’s leading fintech hubs. According to Central Bank of Kenya data, mobile money transactions in the country exceeded Sh7 trillion in 2024, underscoring the growing shift towards cashless commerce.

The CBK has since tightened licensing and supervision of digital payment companies, bringing firms such as Pesapal, Cellulant, and Flutterwave under its regulatory framework.