<em> — KCB Bank Group has opted for a minority investment in payment solutions firm Pesapal as part of a strategy to gain exposure to the fast-growing fintech sector while avoiding the risks associated with full acquisitions.

The lender said minority stakes allow it to tap into the growth and innovation of fintech firms without imposing the operational, governance and regulatory demands that often slow down technology-driven businesses once absorbed into large banking groups.

Pesapal provides integrated payment solutions that enable merchants to accept card, mobile money and bank transfer payments across Kenya, Uganda, Tanzania, Rwanda, Malawi, Zambia and Zimbabwe, operating under regulatory oversight from central banks in those markets.

KCB Bank Group's strategy and innovation director, Mark Mwongela, said the structure preserves the agility that allows fintech firms to scale rapidly and respond quickly to market changes.

The bank said the partnership model will inform its future investments in digital and technology-led financial services as competition intensifies across the payments ecosystem.