BUSINESS

KCB Group to Acquire Minority Stake in Pesapal in Fintech Growth Drive

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KCB Group CEO Paul Russo
KCB Group CEO Paul Russo.
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KCB Group Plc has revealed plans to purchase a minority stake in Pesapal Limited signalling growing interest in Kenya’s digital payments and fintech landscape.

Pesapal is a payment service provider regulated by the Central Bank of Kenya (CBK) and is known for offering secure, innovative payment solutions across East Africa.

The announcement was made through a public statement shared on the Nairobi Securities Exchange (NSE) X platform on November 3, 2025. It marks one of KCB’s most significant steps toward strengthening its digital financial services and expanding its reach among small and micro businesses in the country.

In the statement, KCB said the new investment aims to combine the bank’s extensive financial expertise with Pesapal’s technological innovation to make payments easier and more efficient for Kenyan enterprises.

“We are delighted to inform our shareholders and the investing public that KCB Group Plc (KCB) has, on 31 October 2025, agreed to acquire a minority stake in Pesapal Limited (Pesapal),” the press release states.

KCB explained that the partnership will open new opportunities for both organisations to develop fresh digital products that address the evolving needs of businesses and consumers.

Pesapal, which provides a wide range of payment processing solutions for merchants, airlines, schools, and other sectors, is expected to play a key role in helping KCB enhance its digital ecosystem.

According to the bank, the collaboration will focus on creating modern, tech-driven financial services that are fast, secure, and accessible to millions of Kenyans.

“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 announcement details.

The move fits squarely within KCB’s broader mission of promoting financial inclusion and supporting the growth of small and micro enterprises, which form the backbone of Kenya’s economy.

By joining forces with Pesapal, the bank hopes to reach underserved business owners who often struggle with limited access to affordable and reliable payment systems.

This strategic investment is also expected to strengthen KCB’s position as a leading player in Kenya’s rapidly evolving fintech scene.

As more consumers and businesses embrace cashless transactions, digital payment platforms have become critical to enhancing convenience and transparency in the financial sector.

Subject to regulatory green light

The transaction is not yet complete and will proceed only after meeting several legal and regulatory requirements.

“The investment is subject to conditions that are customary to transactions of this nature, including receipt of regulatory approvals from the Central Bank of Kenya,” the statement read.

This ensures that the deal complies with Kenya’s financial regulations and safeguards the interests of both investors and customers.

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