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KCB Group, Kenya’s largest commercial bank by assets, is set to acquire a 22.23% stake in Kenyan payments company Pesapal, giving the lender indirect control of Pesapal’s Tanzanian subsidiary, according to Tanzania’s competition regulator.
The Fair Competition Commission (FCC) disclosure provides the first public indication of the size of a transaction KCB has kept undisclosed since announcing the investment in 2025. The value of the proposed stake has not been made public, while the transaction remains subject to regulatory review.
The deal expands KCB’s growing presence in payments and business software, giving the bank access to Pesapal’s merchant network across East Africa and extending a series of investments that have taken the lender beyond conventional banking. Pesapal operates in Kenya, Uganda, Tanzania, Rwanda and Zambia.
Tanzania regulator reviews KCB-Pesapal deal
The FCC published its notice on August 21, confirming that it had begun reviewing the proposed acquisition and inviting comments from parties that could be affected by the transaction.
The review will determine whether the deal could substantially lessen competition in any relevant market in Tanzania, particularly given the proposed indirect control of Pesapal Tanzania.
The regulator said the transaction involves the “acquisition by KCB Group Plc of 22.23% of the entire issued share capital of Pesapal Limited, resulting in the acquisition of indirect control over Pesapal Tanzania Limited.”
The disclosure provides greater clarity on a transaction whose financial terms and ownership details had previously remained private.
The FCC subsequently closed public participation on September 4 after seeking views on the potential impact of the acquisition on customers, suppliers, competitors and employees.
KCB expands into payments and business software
KCB first disclosed the proposed investment in November 2025, stating that it had agreed to acquire an undisclosed minority stake in Pesapal, subject to regulatory approval.
At the time, the bank said the investment would support the development of payment and business-management solutions targeted at small and micro businesses.
The Pesapal investment follows KCB’s acquisition of a 75% stake in Riverbank Solutions, a Kenyan payments and business-software provider, for KES 2 billion ($15.4 million).
The Riverbank transaction, which received competition approval in January 2026, formed part of KCB’s broader strategy to expand its presence in payments and business technology alongside its traditional banking operations.
“We are waiting for regulatory approval [to complete the acquisition],” KCB CEO Paul Russo told investors in March, as the bank pursued plans to expand its merchant payments business across East Africa.
The latest FCC disclosure indicates that the proposed Pesapal transaction would give KCB an indirect interest in the company’s Tanzanian operations.
Pesapal strengthens KCB’s merchant payments reach
Pesapal provides businesses with payment acceptance and management tools, supporting card, mobile money and bank payments.
Its operations across several East African markets provide KCB with exposure to an established merchant network and payment infrastructure beyond Kenya.
Pesapal Tanzania is licensed by the Bank of Tanzania as a payment service provider, according to the FCC.
However, KCB has not publicly disclosed the purchase price for its proposed 22.23% stake or confirmed whether the investment has already been completed.
The FCC notice continues to describe the transaction as a proposed acquisition and states that the regulator has commenced its review and investigation.
The outcome of the review will determine whether KCB can proceed with the acquisition as proposed, while the transaction also highlights the increasing convergence between banking, payments and business software across East Africa’s financial services market.
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