Date: November 3, 2025

In a decisive move to strengthen its digital-payments footprint across East Africa, KCB Group (KCB) has announced plans to acquire a minority stake in Pesapal, one of the region’s leading payments platforms. This strategic investment underscores KCB’s commitment to accelerating its transition beyond traditional banking and into the rapidly evolving world of financial technology.

A Strategic Alignment for the Digital Era

The transaction positions KCB to leverage Pesapal’s extensive merchant network and proven payments infrastructure to deliver more innovative, accessible financial solutions for small and medium-sized enterprises. The deal, which remains subject to regulatory approval, reflects a growing trend among established banks seeking to integrate fintech capabilities into their core operations.

Why Pesapal

Founded in 2009, Pesapal has established itself as a trusted payment service provider, enabling seamless online, mobile, and in-store transactions across multiple platforms. Its technology supports key payment channels including mobile money, card-based payments, and online checkout services.
Over the past decade, Pesapal has expanded its footprint across East and Southern Africa, operating in markets such as Uganda, Tanzania, Rwanda, Zambia, Zimbabwe, and Malawi. Its success has been driven by a focus on interoperability, reliability, and user experience—qualities that align closely with KCB’s digital banking ambitions.

The Impetus Behind KCB’s Move

East Africa continues to experience a rapid shift toward mobile and digital payments, with tens of millions of active mobile-money users reshaping how consumers and businesses transact. Traditional banks face increasing competition from mobile wallet operators that are capturing deposits, payments, and even micro-lending opportunities.
By investing in Pesapal, KCB is not only safeguarding its relevance in this new landscape but also positioning itself to lead in the digital-payments ecosystem. The partnership provides KCB with greater agility, faster go-to-market capabilities, and enhanced access to the region’s growing network of fintech-driven consumers and merchants.

What This Means for the Ecosystem

• For merchants and SMEs: Faster, more secure payment solutions and better integration into KCB’s digital banking ecosystem.
• For KCB: Stronger digital innovation capabilities, deeper reach into the micro and SME segments, and an expanded ecosystem for new product development.
• For the market: A clear signal that collaboration between banks and fintechs is becoming central to Africa’s next wave of financial inclusion and innovation.

Looking Ahead

As banking continues its digital evolution, partnerships like this highlight a defining trend , the convergence of traditional banking stability with fintech agility. KCB’s stake in Pesapal demonstrates how financial institutions are embracing open ecosystems, embedded finance, and real-time digital services to remain competitive and relevant.

For technology partners, this shift reinforces the importance of modular core platforms, open APIs, and cloud-native infrastructures , enabling banks to achieve change without chaos and deliver innovation at scale.