Kenya's Largest Bank Awaits Approval to Expand Pesapal Stake in Digital Payments Push
Nairobi, 11 March 2026
KCB Group, East Africa’s largest lender, is waiting for regulatory clearance to increase its investment in fintech platform Pesapal, which processes payments across five countries. The move follows KCB’s recent KSh68.4 billion profit surge and represents a strategic shift as traditional banks compete with fintech firms for digital transaction dominance. With 99% of KCB’s transactions already digital, the expanded Pesapal partnership could unlock merchant lending opportunities.
Regulatory Approval Awaited for Strategic Acquisition
Chief Executive Paul Russo disclosed the planned transaction during an investor briefing in Nairobi on Wednesday, 11 March 2026, stating that KCB is “waiting for regulatory approval [to complete the acquisition]” [1]. The bank currently holds a minority stake in Pesapal [2], and the increased investment forms part of KCB’s strategy to capture a larger share of digital transactions that are increasingly processed by fintech companies rather than traditional lenders [1]. This acquisition follows KCB’s earlier regulatory success in January 2026, when it secured approval to acquire fintech firm Riverbank Solutions [1], demonstrating the bank’s commitment to expanding its technology capabilities across the region.
Pesapal’s Regional Network Offers Strategic Value
Pesapal operates as a Kenyan-based fintech company running a payments platform that allows businesses to accept card, mobile money, and bank payments both online and in person [1]. The company holds licences in Kenya, Uganda, Tanzania, Rwanda, and Zambia, providing KCB access to a regional network of merchants in sectors including travel, hospitality, and energy [1]. KCB Group plans to leverage this platform to expand digital payments and offer banking services to businesses across the region, including merchant settlement accounts and loans based on transaction data [1]. The company’s reach is evidenced by its recent job postings, including a customer support agent position in Uganda, where Pesapal provides payment solutions for individuals and businesses across Africa in partnership with banks, mobile network operators, and credit card companies [6].
Strong Financial Performance Underpins Expansion Strategy
KCB’s acquisition strategy is supported by robust financial performance, with the bank reporting net profit of KSh68.4 billion (£528 million) for the year ended December 2025, representing an 11.039 increase from KSh61.6 billion the previous year [4]. Total assets rose 9.137 to KSh2.15 trillion, whilst customer lending expanded 15% to KSh1.59 trillion [4]. The bank’s digital transformation is already advanced, with KCB processing 99% of its transactions through digital channels [1]. Group Chief Executive Paul Russo noted that “Our 2025 performance reflects the strength of the KCB franchise, the resilience of our regional footprint, and the continued trust that customers place in us” [4].
Broader Fintech Integration Strategy Takes Shape
The Pesapal deal represents the second major fintech acquisition for KCB within recent months, following its acquisition of a 75% stake in Riverbank Solutions in March 2025 [2]. Riverbank develops software used by organisations such as schools, hotels, transport operators, and religious institutions to manage payments and financial processes, operating in Kenya, Uganda, and Rwanda [1]. KCB stated that integrating Riverbank’s systems with its banking services would allow the lender to reach small and medium-sized businesses with payment and financial management tools [1]. This dual acquisition strategy positions KCB to move closer to the payment systems businesses use daily, targeting the infrastructure that processes transactions and the valuable data those payments generate for offering credit and other financial services to merchants [1]. The bank’s commitment to innovation is further supported by a $150 million green financing package from the African Development Bank [2], highlighting its capacity to balance growth with strategic technology investments.