Tanzania regulator reveals KCB’s 22.23% stake in payments firm Pesapal

KCB Group, Kenya’s largest commercial bank by assets, will 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 figure for a transaction KCB has kept undisclosed since announcing it in 2025. The value of the stake has not been disclosed, and the acquisition remains subject to regulatory review.

The deal deepens KCB’s push into payments and business software, giving the bank exposure to Pesapal’s merchant network across East Africa while adding to a string of investments that have taken it beyond traditional banking. Pesapal operates in Kenya, Uganda, Tanzania, Rwanda and Zambia.

The FCC published the notice on August 21, saying it had started reviewing the transaction and inviting comments from parties that could be affected. The review will assess whether the acquisition could substantially lessen competition in any relevant market in Tanzania.

The regulator said the proposed 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.”

KCB first disclosed the deal in November 2025, saying it had agreed to acquire an undisclosed minority stake in Pesapal, subject to regulatory approval. At the time, KCB said the investment would support payment and business-management solutions for small and micro businesses. The bank had also acquired a 75% stake in Riverbank Solutions, a Kenyan payments and business-software provider, for KES 2 billion ($15.4 million), marking a broader move into payment and business software.

“We are waiting for regulatory approval [to complete the acquisition]”, KCB CEO Paul Russo told investors in March, as the bank sought to expand its merchant payments business across East Africa.

Pesapal provides businesses with payment and management tools, including card, mobile money and bank payment acceptance. Its Tanzanian subsidiary is licenced by the Bank of Tanzania as a payment service provider, according to the FCC.

The FCC closed public participation on the deal on September 4, after seeking views on its potential effect on customers, suppliers, competitors and employees.

KCB has not publicly disclosed the purchase price or confirmed whether it has already transferred the 22.23% stake. The FCC notice described the transaction as a proposed acquisition and said it has begun its review and investigation.

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