By John Otini
Pesapal founder Agosta Liko, early investor Eva Fund, and other shareholders are set for a major payout following KCB Group Plc’s move to acquire a minority stake in the fintech firm, marking a significant milestone in Kenya’s digital payments landscape. The acquisition, announced through a public notice approved by the Capital Markets Authority, positions KCB to expand deeper into the fast-growing financial technology ecosystem, particularly in small and medium enterprise payments.
In a statement issued to the Nairobi Securities Exchange, KCB said it had “entered into an agreement to acquire a minority stake in Pesapal Limited (Pesapal)” on 31 October 2025. The bank described the deal as an important step in fostering innovation in digital payments and business solutions for Kenya’s micro and small enterprises. “The investment sets the stage for development of innovative payment and other related solutions for Kenya’s small and micro enterprises enhancing value for shareholders of both Pesapal and KCB,” the lender stated.
“We are delighted to inform our shareholders and the investing public that KCB Group Plc (KCB) has, on 31 October 2025, entered into an agreement to acquire a minority stake in Pesapal Limited (Pesapal),” KCB said in a statement to NSE investors.
While KCB did not disclose the transaction value or the size of the stake, the deal is expected to value Pesapal in the tens of millions of dollars given its extensive footprint in Kenya’s payments sector and growing regional operations. The acquisition will give the lender access to Pesapal’s payment gateway and merchant network, which processes thousands of transactions daily for businesses across Kenya, Uganda, and Tanzania.
Pesapal’s journey reflects Kenya’s evolution as a fintech powerhouse. Founded in 2009 by software engineer Agosta Liko, the company started as a simple payment integration service for small merchants seeking to accept online card payments. Over the years, it expanded into mobile money integration, event ticketing, and school fee payments, riding on Kenya’s digital payments revolution. In 2022, Pesapal became one of the few non-bank entities licensed by the Central Bank of Kenya as a payment service provider under the new regulatory framework for fintechs. This licensing milestone enhanced its credibility and paved the way for institutional investment such as KCB’s.
For Liko and early backers like Eva Fund, the acquisition represents both a financial windfall and validation of over a decade of persistence in a highly competitive fintech market. Pesapal’s growth has been steady but deliberate, focusing on infrastructure and reliability rather than aggressive customer acquisition. The platform now supports payments for airlines, hotels, schools, and supermarkets, and has integrated Visa, Mastercard, and M-Pesa payments into a seamless ecosystem used by thousands of Kenyan businesses.
KCB Group, one of East Africa’s largest banking institutions, said the investment aligns with its broader strategy to leverage technology and partnerships to enhance financial inclusion. “We are delighted to inform our shareholders and the investing public that KCB Group Plc has entered into an agreement to acquire a minority stake in Pesapal Limited,” said Group General Counsel and Company Secretary, Bonnie Okumu, in the statement. She added that the transaction “is subject to conditions that are customary to transactions of this nature, including receipt of regulatory approvals from the Central Bank of Kenya.”
The acquisition also comes at a time when traditional banks are racing to integrate fintech capabilities into their operations amid growing competition from mobile-based financial service providers. KCB has been expanding its digital banking portfolio, with over 95 percent of its transactions now happening outside physical branches. Its investment in Pesapal is therefore expected to complement its existing platforms such as Vooma and KCB Mobi, potentially enhancing its merchant acquiring and payment processing capabilities.
The deal is a strategic step for KCB to tap into Pesapal’s agile technology stack and regional footprint. With Pesapal already operating in several East African countries, the partnership could serve as a launchpad for KCB’s digital products across borders. It may also deepen the bank’s reach among small traders and informal businesses that form the backbone of regional commerce.
The transaction will, however, require approval from the Central Bank of Kenya before completion, reflecting the regulator’s heightened scrutiny of payment and fintech deals to ensure consumer protection and systemic stability. The statement emphasized that “the investment is subject to conditions that are customary to transactions of this nature, including receipt of regulatory approvals from the Central Bank of Kenya.”
The announcement was signed on behalf of the KCB board by Bonnie Okumu and noted that it had been issued “with the approval of the Capital Markets Authority in Kenya.” As part of the transaction process, KCB Investment Bank served as the transaction adviser, while DLA Piper Africa, Kenya (IKM Advocates) acted as legal counsel.
For Kenya’s fintech ecosystem, KCB’s entry into Pesapal signals growing institutional confidence in homegrown payment solutions. For Pesapal, it marks the beginning of a new phase—one where a homegrown technology firm moves from entrepreneurial independence to strategic partnership with one of the region’s financial giants, solidifying its place in East Africa’s digital economy.
