KCB Group, Kenya’s largest bank by assets, is awaiting regulatory approval to acquire a stake in regional payments startup Pesapal as part of a broader push to expand its presence in merchant payments across East Africa.
The bank’s Chief Executive Officer, Paul Russo, disclosed the planned transaction during an investor briefing in Nairobi, noting that the deal is currently pending approval from financial regulators. According to Russo, the acquisition forms part of the lender’s strategy to deepen its digital payments footprint and capture a larger share of the region’s growing electronic transactions.
Banks across East Africa have been intensifying efforts to compete with fintech firms that now process a significant share of digital payments. KCB said about 99 percent of its transactions are already conducted through digital channels, and the partnership with Pesapal is expected to help bring more businesses into the bank’s ecosystem while attracting additional deposits from merchants and their customers.
Pesapal operates a payments platform that allows businesses to accept card, mobile money and bank payments both online and in physical locations. The fintech firm holds licences in Kenya, Uganda, Tanzania, Rwanda and Zambia, giving KCB access to a broad regional merchant network in sectors including travel, hospitality and energy.
The proposed investment follows KCB’s recent acquisition of Riverbank Solutions, which the bank purchased to strengthen its technology capabilities and expand digital business services. By integrating Riverbank’s software and Pesapal’s payment infrastructure with its banking services, KCB aims to provide merchants with settlement accounts, credit products and financial management tools as digital commerce continues to expand across the region.