Kenya’s leading banking institution, KCB Group PLC, is making a bold move into the digital financial arena with its announcement on March 24, 2025, regarding the planned acquisition of a 75% stake in Riverbank Solutions Limited, a prominent local financial technology firm. This strategic initiative underscores KCB’s ambition to strengthen its position as a regional leader in innovative payment solutions while expanding its footprint across East Africa.
The announcement was made in accordance with the regulations set forth by the Capital Markets Authority in Kenya, providing a detailed overview of the agreement between KCB and Riverbank Solutions. KCB, which recently reported a remarkable 64.9% increase in after-tax profit, reaching approximately $478.14 million (KES 61.8 billion) in 2024, is strategically positioning itself to harness Riverbank’s expertise in payment ecosystems and non-banking services. This acquisition follows a robust financial year for KCB, with profits rising from around $290.14 million (KES 37.5 billion) the previous year, and a balance sheet that now stands at approximately $15.16 billion (KES 1.96 trillion).
Riverbank Solutions, founded in 2010 by Nick Mwendwa, the former president of the Football Kenya Federation (FKF), has been a significant player in Kenya’s rapidly growing fintech sector for over a decade, specializing in the development and deployment of payment solutions. KCB has maintained a close partnership with Riverbank for the past 12 years, utilizing its technology for agency banking services since 2013. This existing collaboration, according to KCB, lays a solid foundation for the acquisition and ensures compatibility in both culture and operations.
The rationale behind this acquisition is multifaceted. KCB Group CEO Paul Russo emphasized that the move aims to “actualize new digital capabilities to deliver customer-centered value propositions through technology, ensuring seamless, reliable, secure, and innovative solutions for our customers.” With forecasts indicating rapid growth in the payments sector across the region, KCB is clearly poised to capitalize on this trend and provide a comprehensive suite of solutions.
A significant asset for KCB in this acquisition is Riverbank’s technology platform, ‘Zed 360’. This platform provides Small and Medium-sized Enterprises (SMEs) and Micro, Small and Medium-sized Enterprises (MSMEs) with essential business management tools, including inventory management, financial reporting, and payroll management. By integrating these capabilities, KCB aims to enhance the operational efficiency of its business customers and empower them with data-driven decision-making tools.
In addition to Zed 360, Riverbank offers other noteworthy solutions. The ‘Swipe’ platform facilitates agency banking services, allowing KCB to potentially extend its reach into underserved areas and provide essential financial services such as bill payments and license renewals more efficiently. The ‘Zizi’ platform focuses on revenue collection, a feature that KCB believes will enable it to collaborate more effectively with county governments to address inefficiencies and unlock billions in untapped revenue from sources like land rates, parking fees, and liquor licenses. Furthermore, ‘CheckSmart’ caters to social payments, further diversifying KCB’s digital offerings.
The acquisition aligns with KCB’s broader strategy to enhance innovation in its digital MSME offerings. This includes a focus on seamless transaction and payment services, instant digitized lending, and the provision of non-banking solutions such as business training and marketplace presence. By integrating Riverbank’s capabilities, KCB aims to accelerate its strategy to connect with partner platforms and other fintech firms, offering services like virtual wallets and payment APIs. This consolidation will also allow KCB to streamline its agent banking channels into a unified platform.
Riverbank’s operational presence extends beyond Kenya, with a footprint in Uganda and Rwanda. This regional reach is undoubtedly appealing to KCB, which has been actively expanding its operations throughout East Africa. The acquisition will not only enhance KCB’s technological capabilities but also strengthen its distribution network across the region. While the announcement has been made, the acquisition is still subject to customary conditions, including essential regulatory approvals from the Central Bank of Kenya and the Competition Authority of Kenya. Once these approvals are obtained, Riverbank Solutions will officially become a subsidiary of KCB Group PLC.
This strategic acquisition by KCB highlights the increasing significance of fintech in the African financial landscape. Traditional banks are increasingly recognizing the necessity to partner with or acquire agile technology firms to remain competitive and meet the evolving demands of their customers. The acquisition of Riverbank positions KCB as a frontrunner in this digital transformation, potentially unlocking new revenue streams, enhancing customer experiences, and solidifying its leadership in the Kenyan and broader East African banking sector. The success of this acquisition will be closely monitored by industry players and analysts alike, as it could set a precedent for further consolidation and collaboration between established financial institutions and innovative fintech companies in the region.
