KCB Bank Group has acquired a minority stake in Pesapal, a leading payment service provider in East Africa, marking the bank’s second major fintech investment in 2025. The transaction follows KCB’s $15.4 million acquisition of a 75% stake in Riverbank Solutions in March 2025.
Pesapal provides a range of digital financial services, including payment gateway technology, point-of-sale (POS) solutions, and digital credit for small and medium-sized enterprises (SMEs). The company currently processes more than 12 million transactions monthly across multiple markets in East Africa.
According to KCB Group Chief Executive Officer Paul Russo, the latest investment aligns with the bank’s strategy to strengthen its presence in the fast-growing digital payments space. “Across the region, payments are expected to have the fastest growth, suggesting an opportunity to innovate,” Russo said. “We are building a full-stack financial services platform that supports not just lending but also the infrastructure businesses need to operate digitally.”
With the Riverbank and Pesapal acquisitions, KCB gains strategic access to both the distribution and acceptance sides of the payments ecosystem. Riverbank Solutions provides agency banking infrastructure and business management tools for SMEs, while Pesapal enhances KCB’s merchant payment capabilities. Together, the two investments are expected to help KCB deepen its footprint in digital financial services and enhance cross-border payment solutions.
The acquisitions come as KCB reports strong financial performance. In 2024, the bank’s profit rose by 64.9% to KSh 61.8 billion, supported by a surge in digital transactions, which now account for 99% of customer activity. Non-interest income climbed to KSh 67.5 billion, highlighting the impact of the bank’s diversification into non-lending income streams.
Both the Pesapal and Riverbank deals are subject to regulatory approval from the Central Bank of Kenya. Once finalized, they will solidify KCB’s position as one of the region’s most active traditional banks investing in fintech infrastructure.
KCB’s moves come amid growing interest from African banks in fintech partnerships and acquisitions as the digital economy expands. By investing in established, licensed payment firms such as Pesapal, KCB aims to accelerate its digital transformation and strengthen its role in driving East Africa’s digital commerce growth.
