KCB Confirms Acquisition of Minority Stake In Digital Payments Service Provider Pesapal Ltd

KCB Group PLC, one of East Africa’s banking giants, has confirmed it is acquiring a minority stake in payments fintech Pesapal Limited. The investment, signed on October 31, 2025, positions KCB to control a ‘full-stack’ financial ecosystem, moving it from a traditional lender to a fully integrated financial technology provider.

The acquisition of the payment service provider (PSP), which is licensed by the Central Bank of Kenya and operates across five countries (Kenya, Uganda, Tanzania, Rwanda, and Zambia) is the second major fintech play by KCB this year, following its earlier purchase of a majority stake in Riverbank Solutions, a company specialising in backend core banking and payment processing infrastructure.

KCB Group CEO Paul Russo has previously stated the bank’s goal is to offer a comprehensive suite of solutions. When viewed in tandem, the two acquisitions demonstrate a clear trajectory: Riverbank provides the technical backend processing capabilities while Pesapal offers the visible interface, which comprise the customer-facing merchant systems such as Point-of-Sale (POS) devices and e-commerce gateways.

By weaving these two assets together, KCB Group is cutting out reliance on third-party vendors for critical components of the digital payment value chain. This vertical integration allows KCB to exert greater control over transaction costs, security protocols, and, most importantly, the instant delivery of digital financing. The ultimate prize is the continent’s growing SME sector, which demands efficient, secure, and scalable payment tools integrated with credit access.

Strategically, this partnership brings benefits for all parties: Pesapal’s robust merchant network, particularly in hospitality, retail, and travel, combined with KCB’s vast financial capacity and established market presence, creates a fast-moving, efficient network with sufficient reach and lots of room for scale. The move ensures that KCB captures the entire transaction lifecycle, from the point of sale on a Pesapal terminal to the settlement via the Riverbank backend, allowing for richer data insights that can inform bespoke lending decisions.

Agosta Liko, Pesapal co-founder and CEO, emphasises that the collaboration aligns with their mission to build financial growth infrastructure for African businesses, signaling that the payments firm will continue to operate independently under its current leadership.