In a strategic move to solidify its position as a leader in digital financial services, KCB Group, Kenya’s largest commercial bank by assets, is set to acquire a 75% stake in Riverbank Solutions for $15.4 million (KES 2 billion).

This acquisition, pending regulatory approval, illustrates KCB’s commitment to enhancing its digital operations amid increasing competition in the Kenyan banking sector.

The acquisition aims to elevate KCB’s capacity to deliver integrated digital services. Riverbank Solutions, a payment solutions provider, offers systems for revenue collection to banks, e-commerce platforms, and government agencies.

By integrating these capabilities, KCB is positioning itself to meet the rising demand for seamless, secure, and innovative digital financial services.

Enhancing Digital Capabilities

KCB’s chief executive, Paul Russo, emphasised the bank’s focus on innovation through technology. “We are actualising new digital capabilities to deliver customer-centred value propositions through technology to guarantee seamless, reliable, secure, and innovative solutions for our customers,” he said.

Russo highlighted that payment solutions represent one of the fastest-growing areas across the region, presenting a significant opportunity for innovation.

The bank’s partnership with Riverbank Solutions is not new. Since 2013, KCB has utilised Riverbank’s platforms to manage its agency banking network.

This acquisition is expected to deepen the collaboration and extend the reach of digital services to small and medium enterprises (SMEs).

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KCB plans to leverage Riverbank’s technology to offer financial management tools, digital loans, and treasury management solutions.

About Riverbank Solutions

Founded in 2010 by Nick Mwendwa, Riverbank Solutions has established itself as a key player in the digital payments space.

The company operates in Kenya, Uganda, and Rwanda, offering a diverse range of services across various sectors. Its client base includes manufacturers, microfinance institutions, retailers, county governments, and even the military.

Riverbank’s product suite includes:

• Zed 360: A business management tool tailored for SMEs.
• Swipe: A platform supporting agency banking services.
• Zizi: A system for revenue collection utilised by county governments like Kisumu and Migori.
• CheckSmart: A solution designed for social payments.

These digital solutions are expected to complement KCB’s existing offerings and enhance the bank’s ability to provide comprehensive, technology-driven financial services.

Strategic Growth and Shareholder Value

KCB Group’s acquisition of Riverbank Solutions is part of a broader strategy to offer end-to-end digital solutions and maximise shareholder value.

“We have made this strategic acquisition to enable us to offer a full-stack solution. This is a great opportunity to maximise value for our shareholders in the long term while strengthening the group’s competitive position,” Russo noted.

This move comes on the back of KCB’s robust financial performance in 2024. The bank reported a 64.9% increase in profit after tax, reaching $477.9 million (KES 61.8 billion).

Non-interest income, which includes revenue from non-banking services, grew by 16.5% to $522 million (KES 67.5 billion), largely fuelled by increased earnings from foreign exchange trading.

The Future of Digital Banking in Kenya

The acquisition of Riverbank Solutions reflects a broader trend in Kenya’s banking sector, where financial institutions are racing to enhance their digital capabilities.

With payments identified as a key growth driver, KCB is positioning itself to capitalise on the expanding digital economy.

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By integrating Riverbank’s advanced payment platforms, KCB aims to not only improve operational efficiency but also to offer innovative products that cater to evolving customer needs.

This strategic investment reinforces the bank’s commitment to shaping the future of digital banking in Kenya and the broader East African region.

As the acquisition awaits regulatory approval, all eyes are on KCB Group as it continues to strengthen its digital transformation journey and deliver enhanced value to customers and shareholders alike.