Kenya’s banking giant, KCB Group PLC, is making a significant stride into the digital financial landscape with its announcement on March 24, 2025, of a planned acquisition of a 75% stake in Riverbank Solutions Limited, a local financial technology firm. The move signals KCB’s ambition to solidify its position as a regional leader in innovative payment solutions and expand its reach across East Africa.
The public announcement, made in compliance with the Capital Markets Authority regulations in Kenya, detailed the agreement between the two entities. KCB, boasting a robust network and a recently reported impressive 64.9% surge in after-tax profit to approximately $478.14 million (KES 61.8 billion) in 2024, is strategically positioning itself to leverage Riverbank’s expertise in payment ecosystems and non-banking offerings. This acquisition comes on the heels of a strong financial year for KCB, which saw its profit rise from around $290.14 million (KES 37.5 billion) the previous year, and its balance sheet reach approximately $15.16 billion (KES 1.96 trillion).
Founded in 2010 by Nick Mwendwa, former Football Kenya Federation (FKF) president, Riverbank Solutions while perhaps not a household name, has been a key player in Kenya’s burgeoning fintech sector for over a decade, specializing in developing and deploying payment solutions. KCB has been a close partner for the past 12 years, utilizing Riverbank’s technology for its agency banking services since 2013. This existing relationship, according to KCB, provides a strong foundation for the acquisition and ensures a good cultural and operational fit.
The rationale behind the acquisition is multifaceted. As KCB Group CEO Paul Russo stated, the move aims to “actualize new digital capabilities to deliver customer-centred value propositions through technology to guarantee seamless, reliable, secure, and innovative solutions for our customers.” With projections indicating rapid growth in the payments sector across the region, KCB is clearly looking to capitalize on this trend and offer a comprehensive suite of solutions.
A key asset for KCB in this acquisition is Riverbank’s technology platform, ‘Zed 360’. This platform offers Small and Medium-sized Enterprises (SMEs) and Micro, Small and Medium-sized Enterprises (MSMEs) crucial business management tools, including inventory management, financial reporting, and payroll management. This integration will allow KCB to provide added value to its business customers, enhancing their operational efficiency and empowering them with data-driven decision-making capabilities.
Beyond Zed 360, Riverbank also offers other significant solutions. The ‘Swipe’ platform facilitates agency banking services, enabling KCB to potentially expand its reach into underserved areas and offer essential financial services like bill payments and license renewals more seamlessly. ‘Zizi’ focuses on revenue collection, a capability that KCB believes will allow it to partner more effectively with county governments to address inefficiencies and unlock potentially billions in untapped revenue from sources like land rates, parking fees, and liquor licenses. Finally, ‘CheckSmart’ caters to social payments, further diversifying KCB’s digital offerings.
The acquisition also aligns with KCB’s broader strategy of increasing 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 see KCB streamline its agent banking channels into a unified platform.
Riverbank’s operational footprint extends beyond Kenya, with a presence in Uganda and Rwanda. This regional reach is undoubtedly attractive to KCB, which has been actively expanding its operations across East Africa. The acquisition will not only bolster KCB’s technological capabilities but also enhance its distribution network throughout the region.
While the announcement has been made, the acquisition is still subject to customary conditions, including the crucial regulatory approvals from the Central Bank of Kenya and the Competition Authority of Kenya. Once these approvals are secured, Riverbank Solutions will officially become a subsidiary of KCB Group PLC.
This strategic move by KCB hints at the growing importance of fintech in the African financial landscape. Traditional banks are increasingly recognizing the need to partner with or acquire agile technology firms to stay 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 experience, and solidifying its leadership in the Kenyan and broader East African banking sector. The success of this acquisition will be closely watched 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.