Kenya’s largest commercial bank by assets, KCB Group acquires 75% stake in Riverbank Solutions for $15.4 million (KES2 billion), a payments solutions startup, to strengthen its digital operation. The transaction awaits regulatory approval.
The acquisition marks KCB’s latest move to expand its footprint amid growing competition in Kenya’s banking sector.
KCB Group hopes to increase its ability to offer integrated digital services with the Riverbank acquisition, which provides payment and revenue collection systems to banks, e-commerce platforms, and government agencies.
“We are actualizing new digital capabilities to deliver customer-centered value propositions through technology to guarantee seamless, reliable, secure, and innovative solutions for our customers,” said Paul Russo, KCB chief executive.
“Across the region, payments are expected to have the fastest growth, suggesting an opportunity to innovate.”
Founded in 2010 by Nick Mwendwa, Riverbank Solutions provides payment systems to manufacturers, microfinance institutions, retailers, county governments, and the military. The company operates in Kenya, Uganda, and Rwanda.
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Russo said the bank has partnered with the startup since 2013, using its platforms to run its agency banking network. KCB plans to expand the platform to provide small and medium enterprises (SMEs) with financial management tools, digital loans, and treasury management.
Riverbank offers a range of digital services, including Zed 360, a management tool for small businesses; Swipe, which supports agency banking services; Zizi, a revenue collection platform; and CheckSmart, designed for social payments. Kisumu and Migori counties currently use the company’s platform to collect revenues.
“We have made this strategic acquisition to enable us to offer a full stack solution. This is a great opportunity to maximize value for our shareholders in the long term while strengthening the group’s competitive position,” said Russo.
KCB Group’s profit after tax for 2024 grew 64.9% to $477.9 million (KES61.8 billion), driven by strong revenue growth across all business segments. Non-interest income, including earnings from non-banking services, rose 16.5% to $522 (KES67.5 billion), supported by higher foreign exchange trading income.
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