KCB Group Plc has signed an agreement to acquire a minority stake in Pesapal Limited, pending regulatory approval.
Pesapal, a Payment Service Provider (PSP) licensed by the Central Bank of Kenya (CBK), offers digital payment solutions across Kenya and East Africa. Its products include a payment gateway, point-of-sale terminals, school and hospitality payment systems, event ticketing, and recurring payments and subscription-billing platforms.
The move aligns with KCB’s strategy to expand its footprint in digital payments and the fintech ecosystem while strengthening its Small and Micro-Enterprise (SME) banking offering. The investment positions KCB to compete with established fintech and digital payment players, including Safaricom (M-Pesa), Equity (Finserve & Jenga), NCBA (Loop), and Co-operative Bank (Co-opPay).
The deal is expected to unlock new payment innovations for SMEs and enhance merchant solutions. As of August 2025, mobile-money transactions in Kenya reached KES 5.5 trillion, a 7.8% increase from KES 5.1 trillion over the same period in the previous year, highlighting the rapid growth of digital financial services.
KCB Group Riverbank Acquisition
In March 2025, KCB Group Plc acquired a 75% stake in Riverbank Solutions Limited, a leading fintech firm with operations in Kenya, Uganda, and Rwanda. Through Riverbank’s ‘Zed 360’ platform, KCB provides SMEs and MSMEs with business-management tools, including inventory management, financial reporting, and payroll services.
In the six months ended June 30, 2025, KCB Group reported a profit after tax of KES 31.5 billion, an 8.1% increase from KES 29.2 billion posted in the same period the previous year.
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