KCB Group PLC and Riverbank Solutions Limited have signed a binding agreement that will see KCB acquire up to 75 per cent shareholding in the financial technology firm. The move aims to strengthen KCB Group’s distribution network across the region.
The successful completion of the transaction is subject to conditions customary for deals of this nature, including receipt of regulatory approvals from, among others, the Central Bank of Kenya.
The acquisition will enhance the Group’s digital capabilities by integrating Riverbank’s expertise in banking agency, social payments, and business solutions.
Founded a decade ago by former Football Kenya Federation President Nick Mwenda, Riverbank has a presence in Kenya, Uganda, and Rwanda.
Through this acquisition, KCB will tap into Riverbank’s expertise in payment ecosystems and non-banking solutions, including capability building, networks, and marketplace services.
Riverbank’s technology platform, ‘Zed 360’, will enable KCB to provide SME and MSME customers with essential business management tools such as inventory management, financial reporting, and payroll management. These tools will streamline financial operations, improve visibility, and support informed decision-making for both the customer and the bank. Riverbank also offers three other key solutions: Swipe for agency banking services, Zizi for revenue collection, and CheckSmart for social payments.
Once the transaction is completed, Riverbank will become a subsidiary of KCB Group PLC.
“We are actualising new digital capabilities to deliver customer-centred value propositions through technology, ensuring seamless, reliable, secure, and innovative solutions for our customers. Across the region, payments are projected to experience the fastest growth, presenting an opportunity for innovation. This strategic acquisition allows us to offer a full suite of solutions, maximising long-term shareholder value while strengthening the Group’s competitive position,” said KCB Group CEO Paul Russo.
“Riverbank is not new to us, as they have been providing our Agency Banking Solution since 2013. We also recognise the true value of the Zed 360 platform, which will enhance our value proposition to MSMEs and help us harness the ecosystem banking model,” he added.
The acquisition aligns with KCB’s ongoing strategy to drive innovation in digital MSME offerings. The focus remains on seamless transactions and payments, instant digitised lending, provision of business management tools, and non-banking solutions such as business training and marketplace access for customers. The transaction will also accelerate the Group’s efforts to integrate with partner platforms and fintechs, offering services such as virtual wallets and payment APIs.
Additionally, the deal will enable KCB to consolidate its agent banking channels into a single platform.
According to KCB Group’s latest financials, released earlier this month, the bank’s profit after tax for the full year 2024 grew by 64.9 per cent to KSh 61.8 billion, driven by strong revenue growth across all business segments. This marks a significant rise from KSh 37.5 billion reported in the same period last year. The Group’s balance sheet closed the year at KSh 1.96 trillion, supported by a strong deposit base and a stable loan portfolio despite a challenging operating environment.
On the technology front, KCB continues to build a simpler, more agile, and digitally-led bank, achieving key milestones such as the establishment of a Digital Centre of Excellence, core banking system upgrades at BPR and NBK, and the launch of innovative products, including digital term loans for MSMEs and the Worship 360 App for faith-based organisations.
