KCB Group is awaiting regulatory approval to acquire a stake in regional payments company Pesapal as part of its strategy to expand its merchant payments presence across East Africa.
The bank’s Chief Executive Officer, Paul Russo, revealed the planned investment during an investor briefing in Nairobi on Wednesday, where he talked about plans to support the lender’s next phase of growth.
“We are waiting for regulatory approval to complete the acquisition,” said Russo.
Pesapal received a green light to conduct operations in Kenya as a PSP in 2019 by the Central Bank of Kenya (CBK).
KCB’s move mirrors what many banks in the country are increasingly trying to capture a large share of digital transactions.
At KCB Group, digital banking already plays a dominant role, with about 99 percent of the bank’s transactions processed through digital channels.
Russo said the partnership with Pesapal could help bring more businesses into the bank’s ecosystem, as it hopes to attract more customer accounts and low-cost deposits.
Pesapal was founded in Kenya to provide a payments platform that enables businesses to accept card payments, mobile money, and bank transfers both online and in physical locations.
Also Read: CBK authorises Pesapal as online service provider in Kenya, Tanzania
It has operational licenses in different African markets, including Kenya, Uganda, Tanzania, Rwanda, and Zambia.
The planned Pesapal investment follows another fintech acquisition by the bank earlier this year.
Two months ago, KCB Group received regulatory approval to acquire Riverbank Solutions, a technology firm that provides software solutions for organisations to manage payments and financial operations.
Riverbank Solutions develops systems used by institutions such as schools, hotels, transport companies, and religious organisations to process payments and manage financial transactions.
The company operates in Kenya, Uganda, and Rwanda, offering tools that support agency banking and digital collections.
According to the bank, integrating Riverbank’s technology with its banking services will help it reach small and medium-sized businesses with better payment and financial management solutions.
Together, the Riverbank and Pesapal deals highlight a growing strategy among banks: moving closer to the payment systems that businesses use every day.
