CAK approves KCB Group’s acquisition of 75% stake in Riverbank Solutions

The Competition Authority of Kenya (CAK) has granted conditional approval to KCB Group, Kenya’s largest lender by assets, for its acquisition of a 75% stake in Riverbank Solutions, a leading Kenyan payments technology firm.

The transaction, valued at approximately US$15 million (around KES 2 billion), marks a significant step in KCB’s push to expand its digital and payments capabilities.

Announced initially in March 2025, the deal received the green light from the anti-trust regulator subject to strict conditions focused on data protection and contract continuity. In its gazette notice, the CAK mandated that KCB ensure all third-party transactional, customer, or merchant data processed through Riverbank’s infrastructure remains ring-fenced.

This data cannot be shared, accessed, or used by KCB beyond what is strictly necessary for Riverbank’s operations. Additionally, KCB must honor all existing agreements with Riverbank’s clients without interruption, safeguarding business continuity and consumer interests.

Founded in 2010 by Nick Mwendwa, Riverbank Solutions delivers payment and revenue-collection platforms to a diverse client base, including businesses, microfinance institutions, retailers, county governments such as Kisumu and Migori, and security agencies.

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Operating across Kenya, Uganda, and Rwanda, the company provides tools like Zed 360 for small business management, Swipe for agency banking, Zizi for revenue collection, and CheckSmart for social payments. The acquisition grants KCB immediate regional reach in payments infrastructure.

This move aligns with KCB’s broader strategy to evolve beyond traditional lending into digital infrastructure, embedded finance, and innovative payments solutions amid slowing loan growth and rising competition in Africa’s banking sector. Large banks across the continent are increasingly acquiring fintech platforms to bolster future growth engines.

A separate KCB proposal to acquire a minority stake in another payments firm, Pesapal, remains under regulatory review. The Riverbank deal still requires final approval from the Central Bank of Kenya (CBK) before it can close.