KCB Group, the largest commercial bank in Kenya, is in the process of acquiring a 75% stake in Riverbank Solutions, a payments solutions startup, for $15.4 million (KES2 billion) to enhance its digital services. The deal is pending regulatory approval.
This acquisition is part of KCB’s strategy to expand its presence in the competitive banking sector in Kenya. The aim is to improve its digital offerings by integrating Riverbank’s payment and revenue collection systems, which cater to banks, e-commerce platforms, and government agencies.
The CEO of KCB, Paul Russo, emphasized the importance of leveraging new digital capabilities to provide innovative and secure solutions for customers. The acquisition aligns with the bank’s goal to enhance its digital services and cater to the fast-growing payments sector.
Riverbank Solutions, founded in 2010, offers payment systems to various entities across Kenya, Uganda, and Rwanda. KCB has been collaborating with the startup since 2013, utilizing its platforms for agency banking operations. The bank plans to expand these services to provide SMEs with financial management tools, digital loans, and treasury management.
Riverbank’s digital services include Zed 360 for small businesses, Swipe for agency banking, Zizi for revenue collection, and CheckSmart for social payments. The company’s platforms are currently used by Kisumu and Migori counties for revenue collection.
The strategic acquisition will enable KCB to offer a comprehensive solution to its customers and enhance its competitive position in the long term. The bank’s recent financial performance has shown significant growth, with a 64.9% increase in profit after tax in 2024, driven by strong revenue growth in all business segments, including non-interest income.