KCB Strengthens Regional Footprint with Pesapal Investment

Kenya’s largest commercial bank, KCB Group, is set to acquire a 22.23% stake in payments company Pesapal, giving it indirect control of the firm’s Tanzanian subsidiary. This strategic move marks KCB’s deepening push into payment solutions and business software across East Africa.

The Fair Competition Commission (FCC) in Tanzania disclosed this transaction on August 21st, noting that KCB will acquire the stake in Pesapal Limited, which in turn controls Pesapal Tanzania Limited. While the purchase price remains undisclosed, this acquisition follows KCB’s earlier investments in payment technology providers.

Pesapal operates across multiple countries including Kenya, Uganda, Tanzania, Rwanda and Zambia, offering businesses integrated payment and management tools that accept cards, mobile money, and bank transfers. The Tanzanian subsidiary is licensed by the Bank of Tanzania as a payment service provider.

The acquisition aligns with KCB’s broader strategy to expand beyond traditional banking services into digital payments and business solutions. Earlier this year, KCB acquired a 75% stake in Riverbank Solutions, another Kenyan payments and software company for $15.4 million.

KCB CEO Paul Russo had previously indicated the bank was seeking to grow its merchant payments business across East Africa, stating they were awaiting regulatory approval for the Pesapal acquisition. The deal is currently under review by Tanzanian regulators who are assessing its potential impact on competition in the market.