In a move to expand its digital operations, Kenya’s biggest commercial lender by assets, KCB Group, is seeking to acquire a 75% stake in Riverbank Solutions for $15.4 million.
The deal, pending regulatory approval, is expected to enhance KCB’s ability to offer integrated financial solutions amid increasing competition in the banking industry.
Riverbank Solutions, a fintech firm founded in 2010, provides payment processing and revenue collection systems for banks, e-commerce platforms, and government agencies across Kenya, Uganda, and Rwanda.
According to KCB’s chief executive Paul Russo, the transaction aligns with the bank’s long-term digital transformation agenda.
“We are enhancing our digital capabilities to ensure we provide seamless, secure, and innovative financial solutions,” Russo said. “The payments sector is growing rapidly across the region, and this acquisition positions us to take advantage of emerging opportunities.”
KCB has been collaborating with Riverbank Solutions since 2013, using its platforms to facilitate agency banking operations.
By bringing the fintech firm into its portfolio, the bank intends to expand its suite of digital services to small and medium enterprises (SMEs), offering financial management tools, digital loans, and treasury solutions.
Riverbank’s key products include Zed 360, a management tool for SMEs; Swipe, which supports agency banking transactions; Zizi, a revenue collection system; and CheckSmart, a social payments platform. Several county governments, including Kisumu and Migori, rely on Riverbank’s technology for revenue collection.
Russo noted that the acquisition will help KCB strengthen its market position while creating value for investors. “This deal supports our ambition to be the leading digital financial services provider while ensuring long-term returns for our shareholders,” he said.
Expanding regional reach
Beyond digital banking, KCB has been aggressively expanding its footprint across East and Central Africa.
In December 2022, the lender finalised its acquisition of Trust Merchant Bank (TMB) in the Democratic Republic of Congo (DRC) for $127 million, cementing its presence in one of Africa’s fastest-growing banking markets.
With operations in Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan, and now DRC, KCB is positioning itself as a regional banking powerhouse.
The Riverbank acquisition complements this growth strategy by bolstering its digital payments infrastructure, a segment projected to drive future profitability.
KCB’s latest moves signal a shift towards a more diversified and technology-driven business model, reinforcing its competitive advantage in an evolving financial landscape.
