KCB Group PLC's Proposed Acquisition of Indirect Control over Pesapal Tanzania Limited

The Fair Competition Commission (FCC) has invited public comments regarding the proposed acquisition by KCB Group PLC of 22.23% of the issued share capital of Pesapal Limited, a transaction that will result in KCB Group PLC acquiring indirect control over Pesapal Tanzania Limited. The FCC has commenced its review and investigation of the transaction pursuant to the Fair Competition Act and the Fair Competition Commission Procedure Rules.

KCB Group PLC is a public limited liability company incorporated in Kenya. The company is listed on the Nairobi Securities Exchange and cross-listed on the Dar es Salaam Stock Exchange, Uganda Securities Exchange, and Rwanda Stock Exchange. In Tanzania, KCB Group operates through its wholly owned subsidiary, KCB Bank Tanzania Limited, which is licensed by the Bank of Tanzania to conduct commercial banking business.

Pesapal Limited is a Kenyan-incorporated financial technology company licensed by the Central Bank of Kenya as a payment service provider. The company provides payment processing and business management solutions to customers across a range of sectors, including retail, hospitality, petroleum, manufacturing, and business-to-business services. Pesapal maintains subsidiaries in Uganda, Tanzania, Rwanda, and Zambia. In Tanzania, it operates through Pesapal Tanzania Limited, which is licensed by the Bank of Tanzania as a payment service provider.

The proposed transaction involves the acquisition of a minority shareholding in Pesapal Limited that is sufficient to confer indirect control over Pesapal Tanzania Limited. The transaction therefore brings together a leading regional banking group and an established digital payments provider operating within the East African market. The FCC is currently assessing the transaction and has invited stakeholders to submit comments on any potential competition concerns arising from the merger, including its likely impact on competition, customers, suppliers, competitors, employees, and other affected market participants in Tanzania.