Tanzania Regulator Reviews KCB’s Proposed 22.23% Pesapal Stake

Tanzania’s Fair Competition Commission is reviewing KCB Group’s proposed acquisition of a 22.23% stake in Pesapal Limited, a transaction that would give the Kenyan banking group indirect control of Pesapal Tanzania Limited.

The regulator said in a notice published on August 21 that it had begun examining the proposed purchase of Pesapal’s entire issued share capital represented by the 22.23% stake. The review remains ongoing, and the transaction is still subject to regulatory approval.

Regulator seeks views on competition impact

The Fair Competition Commission invited comments from parties that could be affected by the deal, including customers, suppliers, competitors and employees. Public participation closed on September 4.

The commission’s assessment will consider whether the acquisition could substantially reduce competition in any relevant market in Tanzania. The regulator has not announced the outcome of its review.

Pesapal Tanzania Limited is licensed by the Bank of Tanzania as a payment service provider. Pesapal operates across Kenya, Uganda, Tanzania, Rwanda and Zambia, offering payment and management tools that include card, mobile money and bank payment acceptance.

KCB’s expansion into payments

KCB Group, described as Kenya’s largest commercial bank by assets, first disclosed in November 2025 that it had agreed to acquire an undisclosed minority stake in Pesapal. The agreement was announced as being subject to regulatory approval.

KCB said the investment would support payment and business-management solutions for small and micro businesses. The proposed stake would also give the bank greater exposure to Pesapal’s merchant network and strengthen its activities in payments and business software.

In March, KCB chief executive Paul Russo told investors that the bank was still awaiting approval to complete the transaction. “We are waiting for regulatory approval [to complete the acquisition],” Russo said.

The purchase price for the proposed Pesapal stake has not been disclosed. It is also unclear whether KCB has already transferred the shares, and there is no confirmed indication that the acquisition will ultimately be completed.

Earlier payments investment

KCB has also expanded its presence in the payments and business-software sector through its acquisition of a 75% stake in Kenya-based Riverbank Solutions. The bank paid KES 2 billion, reported as equivalent to $15.4 million, for that interest.

The FCC’s review of the Pesapal proposal will determine whether the transaction raises competition concerns in Tanzania before any final regulatory decision is made.