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Key Points
- KCB Group is set to buy a 75% stake in Riverbank Solutions for Ksh2 billion ($15.4 million) to boost digital banking capabilities.
- The acquisition strengthens KCB’s fintech-driven solutions for SMEs, financial institutions, and county governments across Kenya, Uganda, and Rwanda.
- KCB reported a 64.9% profit increase to Ksh61.8 billion ($477.9 million) in 2024, reinstating dividends after an 87% surge in first-half earnings.
KCB Group Plc, led by Kenyan banker Paul Russo, is set to acquire a 75 percent stake in payments solutions startup Riverbank Solutions for Ksh2 billion ($15.4 million). The deal, which is pending regulatory approval, marks a significant step in KCB’s push to expand its digital banking capabilities and strengthen its position in Kenya’s fast-evolving financial sector.
Strengthening digital banking in a competitive market
With competition in Kenya’s banking sector intensifying, KCB is betting on fintech to stay ahead. Riverbank Solutions, founded in 2010 by entrepreneur Nick Mwendwa, provides payment and revenue collection systems used by banks, e-commerce platforms, and government agencies across Kenya, Uganda, and Rwanda.
KCB CEO Paul Russo emphasized the bank’s focus on delivering seamless and secure digital services. “We are enhancing our digital capabilities to offer reliable, innovative solutions that meet the needs of our customers,” he said.
By integrating Riverbank’s technology, KCB aims to expand its digital solutions for small and medium enterprises (SMEs), financial institutions, and county governments. The startup’s suite of financial tools includes Zed 360 for SME management, Swipe for agency banking, Zizi for revenue collection, and CheckSmart for social payments. Several county governments, including Kisumu and Migori, already use Riverbank’s platform for revenue collection.
A longstanding partnership turned acquisition
KCB has worked with Riverbank Solutions since 2013, leveraging its technology to power its agency banking network. With this acquisition, the bank plans to go beyond agency banking and offer a wider range of fintech-driven services, from SME financial management tools to digital loans and treasury management solutions.
“This acquisition allows us to provide a full-stack digital banking solution,” Russo added. “It’s a great opportunity to create long-term value for our shareholders while strengthening our competitive position.”
As digital payments continue to grow rapidly across East Africa, KCB’s investment in Riverbank Solutions signals a strong commitment to innovation in financial services and reinforces its leadership in Kenya’s banking industry.
KCB’s market position and financial strength
Founded in 1896, KCB Group operates as a holding company overseeing KCB Bank Kenya, National Bank of Kenya, and several regional subsidiaries. It also owns KCB Bancassurance Intermediary, KCB Investment Bank, KCB Asset Management, and KCB Foundation.
With an asset base of Ksh2.0 trillion ($15.3 billion), the group boasts one of the region's largest banking networks—528 branches, 1,313 ATMs, and over 1.2 million merchants and agents offering 24/7 financial services.
Its latest move follows a strong financial year for KCB. The bank reported a net profit of Ksh61.8 billion ($477.9 million) in 2024, a 64.9 percent increase from the previous year. This growth was driven by strong revenue performance across all business segments, with non-interest income—such as forex trading earnings—rising 16.5 percent to Ksh67.5 billion ($522 million).
KCB also reinstated dividend payouts following an 87 percent jump in net profit for the first half of 2024. Shareholders received Ksh1.5 ($0.012) per share, totaling Ksh4.8 billion ($37.1 million). Payments are scheduled for Oct. 30 for those on record as of Sept. 12.
