KCB Group Bets on Pesapal in Push for Digital Payments Growth

KCB Group PLC has declared its intention to become a minority shareholder to Pesapal Limited, a market leader in digital payments in East Africa. The relocation highlights the future intentions of the bank to keep growing its presence in the digital finance industry and the promotion of small and micro businesses (SMEs) in Kenya and the region as a whole.

On October 31, 2025, KCB stated that it had entered into a deal to acquire the stake in Pesapal, subject to regulatory approval. The bank noted that the investment is to drive innovation in the financial technology sector, specifically in the digital payment and transactions processing sector.

The statement said that KCB Group PLC was pleased to announce that the company has entered into an agreement to purchase a minority stake in Pesapal Limited to please its shareholders as well as the investing public. Pesapal is a limited liability company registered by Central Bank of Kenya as a payment service provider. This alliance will create the path towards developing new and innovative payment solutions that are more specific to the needs of small and micro enterprises in Kenya and eventually create more value to the shareholders of both firms.

KCB further stipulated that the transaction is liable to a number of customary terms among them being the approval by the Central Bank of Kenya (CBK). The bank said investment was subject to terms that were common to such transactions such as getting regulatory approvals by the Central Bank of Kenya.

The role of Pesapal in Digital Economy in East Africa.

Pesapal Limited is among the oldest online payment services in East Africa, which provides various services that allow business persons to receive payments using mobile money, cards, and online. The company facilitates transactions using most payment systems like M-Pesa, Visa, Mastercard, and American Express and therefore it is a critical force to the digital commerce ecosystem in the region.

Pesapal, which began its operations in Kenya, has extended its operations to Uganda, Tanzania, Malawi, Rwanda and Zambia and has been serving a wide range of businesses including small traders and big businesses. The products in the company have been instrumental in the digitization of payments in different sectors, assisting businesses to receive electronic payments without any issues of interruption or compromise.

Strategic Fit to KCB Digital Vision.

The Pesapal investment will be consistent with the long-term goal of KCB Group to entrench itself in the digital financial technology and payment ecosystem. The bank has been following a digital-first strategy over the years, which involves diversifying its ecosystem beyond the conventional banking services.

This new investment is only a few months following the purchase of 75 percent share of Riverbank Solutions, an information technology company dealing in financial service technology by the KCB. The acquisition was also included in the greater scheme of KCB, which was announced on March 24, 2025, to bolster its payment infrastructure as well as customer experience.

Riverbank is a financial tech company that mostly designs and implements payment infrastructure. After collaborating with them over the past 12 years, we are sure that they are a good fit to our business and will make a lot of value to the Group,” KCB said then.

Riverbank Solutions is based in Kenya, Uganda, and Rwanda whereby it offers an array of technology-based products to assist in payment processing, agency banking, and collection of revenues. Its services are Swipe, an agency banking platform; Zizi, a platform used to provide revenue services to organizations and Checksmart, a platform used to manage social payments.

Enhancing Regional Fintech Capabilities.

KCB Group is establishing itself as a prime financial technology player in the East African region, through its stakes in Riverbank Solutions and currently Pesapal. The bank strategy is oriented on the implementation of the latest payment systems that enable small companies, increase the efficiency of transactions, and facilitate financial inclusion throughout the area.

KCB also hopes to offer the customers convenient, safe, and innovative digital payment experiences through cooperation with the existing fintech companies. Continued growth into the fintech sector also points to the fact that the bank has realized the importance of technology in future banking development.

The collaboration between KCB Group and Pesapal, when allowed by regulators, will help unlock new opportunities to both organizations, and they will be able to provide the latest digital business solutions to both businesses and consumers.