KCB Group has signed a deal to buy a minority stake in Pesapal, the Kenyan digital payments company that’s been processing transactions for businesses since 2009. The agreement, announced yesterday, still needs approval from the Central Bank of Kenya before it can close.
The acquisition fits into KCB’s larger push to move beyond traditional banking. The lender wants to use Pesapal’s technology and merchant network to build payment solutions aimed specifically at small and micro businesses in Kenya.
KCB isn’t new to strategic acquisitions. The bank bought Trust Merchant Bank in the Democratic Republic of Congo back in 2022 as part of its expansion across Africa.
It now operates as one of East Africa’s largest financial institutions with over 30 million customers spread across Kenya, Uganda, Tanzania, Rwanda, South Sudan, Burundi, and Ethiopia.
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Pesapal brings something different to the table. Founder Agosta Liko launched the company in 2009, and it has since grown into a payment service provider licensed by the Central Bank of Kenya.
The platform handles online, mobile, and in-store payments for businesses and individuals, with integrations that include M-Pesa, Airtel Money, Visa, and Mastercard.
Its mobile app has passed 100,000 downloads on the Google Play Store, and the company has expanded operations into Uganda, Tanzania, Rwanda, Zambia, Zimbabwe, and Malawi.
According to the latest Communications Authority data, mobile money has reached 47.7 million active subscriptions as of June 2025. This indicates how rapidly cashless payments have taken hold.
With mobile money now making up a large portion of mobile revenues, traditional banks are feeling the pressure. The convenience, low cost, and easy access of mobile wallets are starting to eat into banks’ market share in deposits, payments, and even lending. This helps explain why KCB decided to buy a minority stake in Pesapal.
KCB Investment Bank is advising on the transaction, with DLA Piper Africa Kenya handling the legal work. The Capital Markets Authority has already approved the public announcement, though the deal itself hinges on Central Bank clearance.
