NAIROBI, Mar 12 – Kenya Central Bank is seeking regulatory approval to acquire a stake in regional payments company Pesapal as the lender expands its presence in digital merchant payments across East Africa.
The proposed investment was disclosed by KCB chief executive Paul Russo during an investor briefing in Nairobi on Wednesday. Russo said the bank is awaiting regulatory clearance before completing the transaction.
The move reflects a broader shift among banks in the region as they pursue a larger share of digital transactions, many of which are increasingly processed by fintech firms rather than traditional lenders. According to KCB, about 99% of the bank’s transactions are already processed through digital channels.
Pesapal operates a payment platform that enables businesses to accept card, mobile money and bank payments both online and in physical locations, with the company holding licences in Kenya, Uganda, Tanzania, Rwanda and Zambia, providing access to a regional merchant network across sectors including travel, hospitality and energy.
KCB plans to use the platform to deepen its payments offering while connecting businesses to banking services such as settlement accounts and credit products linked to transaction activity.
The planned Pesapal investment follows another recent fintech acquisition by the bank as earlier this year, KCB received regulatory approval to acquire Riverbank Solutions, a financial technology firm that develops software used by organisations including schools, hotels, transport operators and religious institutions to manage payments and financial operations.
Riverbank operates in Kenya, Uganda and Rwanda and provides digital tools linked to agency banking and electronic collections. KCB said integrating Riverbank’s systems with its banking services will help expand access to financial tools for small and medium sized businesses.
The two transactions highlight increasing collaboration between banks and fintech firms as digital commerce continues to expand across East Africa.
