Tanzania Reviews KCB’s Proposed 22.23% Stake in Pesapal

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

The commission disclosed the proposed deal in a notice outlining its review of the transaction and its possible effects on competition in Tanzania. The acquisition has not been completed, and remains subject to regulatory consideration.

Competition review under way

According to the Fair Competition Commission, KCB plans to purchase 22.23% of Pesapal’s entire issued share capital. The regulator is assessing whether the transaction could substantially reduce competition in any relevant market in Tanzania.

The commission published its notice on August 21 and invited potentially affected parties to submit their views. Public participation closed on September 4, with the regulator seeking comments on the possible effects of the deal on customers, suppliers, competitors and employees.

The outcome of the competition review has not been announced.

Deal details remain undisclosed

KCB has not disclosed the purchase price for the proposed stake. It has also not confirmed whether the shares have already been transferred, meaning the acquisition cannot be treated as completed.

KCB first announced the planned investment in November 2025 as an agreement to acquire an undisclosed minority interest in Pesapal, subject to regulatory approval. In March, KCB chief executive Paul Russo told investors, “We are waiting for regulatory approval [to complete the acquisition].”

KCB is described as Kenya’s largest commercial bank by assets. The bank has said its investment in Pesapal would support payment and business-management solutions for small and micro businesses.

Pesapal’s regional operations

Pesapal provides tools that allow businesses to accept card, mobile-money and bank payments, alongside business-management services. Its listed operating markets are Kenya, Uganda, Tanzania, Rwanda and Zambia.

Pesapal Tanzania Limited is licensed by the Bank of Tanzania as a payment service provider. The proposed transaction would give KCB exposure to Pesapal’s merchant network across East Africa, while also creating an indirect ownership link to the Tanzanian subsidiary.

The proposed investment follows KCB’s acquisition of a 75% stake in Kenyan payments and business-software provider Riverbank Solutions. KCB valued that transaction at KES 2 billion, equivalent to $15.4 million.

For now, the value of the Pesapal stake, the timing of any transfer and the final regulatory decision remain undisclosed.