The Competition Authority of Kenya (CAK) has officially authorized KCB Group’s acquisition of a 75% stake in Riverbank Solutions Limited, a move valued at approximately $15 million (Ksh 2 billion). The deal marks a major milestone in KCB’s strategy to evolve from a traditional banking institution into a regional financial technology powerhouse.
The acquisition is set to provide KCB with a robust foothold in the digital payments and merchant services sector. Riverbank Solutions, which operates across Kenya, Uganda, and Rwanda, specializes in providing payment processing and business management tools for Micro, Small, and Medium Enterprises (MSMEs).
KCB plans to deploy “full-stack” solutions that include inventory tracking, payroll management, and social payment systems. Furthermore, KCB will leverage Riverbank’s existing infrastructure for revenue collection, a service the fintech already provides to several Kenyan county governments.
While the CAK granted its approval, it imposed strict conditions to prevent market dominance and protect consumer data privacy. To ensure a level playing field, the regulator mandated the following:
- Data Isolation: KCB is strictly prohibited from using Riverbank’s third-party merchant and transactional data for its own commercial banking advantages. This “ring-fencing” ensures that sensitive data from Riverbank’s other clients remains confidential.
- Contractual Integrity: KCB must honor all existing agreements between Riverbank and its current partners, ensuring that the change in ownership does not disrupt services or lead to the unfair termination of contracts.
KCB is also seeking regulatory approval to acquire a minority stake in Pesapal, another leading payment service provider in East Africa.
The transaction still awaits a final green light from the Central Bank of Kenya (CBK). Once fully ratified, Riverbank Solutions will function as a subsidiary of KCB Group.