KCB Group has signed a binding deal to acquire a 75 per cent stake in Riverbank Solutions Limited, a financial services technology firm offering payment solutions including mobile banking.

On Monday, KCB said the acquisition, which is subject to regulatory approval, is part of its ongoing strategy to boost innovation of digital MSME offerings, targeting seamless transaction and payment services, instant digitized lending, provision of business management tools and offering non-banking solutions including business training and marketplace presence for its customers. 

The significant transaction will aid KCB Group to accelerate its strategy to interconnect with partner platforms and fintechs to offer services such as virtual wallets and payment APIs, and consolidate its agent banking channels into one platform.

The Tier-1 bank noted that it had worked with Riverbank Solutions for 12 years hence its acquisition of a majority stake in the fintech firm strengthened this partnership.

"We are delighted to inform our shareholders and the investing public that we have on 24 March 2025 entered into an agreement to acquire 75 per cent of the issued shares of Riverbank Solutions Limited," stated KCB Group Secretary Bonnie Okumu in an announcement to the Kenyan bank's shareholders.

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He added: "The proposed acquisition is in keeping with our strategy to enhance our payments solutions for the benefit of our customers."

If the agreement received a nod from the Central Bank of Kenya (CBK) and the Competition Authority of Kenya (CAK), Riverbank Solutions will officially become a KCB Group subsidiary.

KCB has conscripted KCB Investment Bank Limited and IKM Advocates as transaction advisers to enable it to circumnavigate the legal and financial complexities of the key pact.

The collaboration between KCB and Riverbank Solutions is set to reorganize digital transactions for KCB customers and strengthen the bank’s place in the fintech space.

Riverbank Solutions is a renowned financial services technology company that majorly develops and deploys payment solutions.

"Having worked closely with them for the last 12 years, we are confident that they are an excellent fit for our business and will add significant value to the Group" intimated Okumu.

The firm, which is linked to former Football Kenya Federation (FKF) President Nick Mwendwa, offers software and digital payment solutions to banks, microfinance, retailers and manufacturers.

Solutions it offers include seamless secure payment systems, mobile payment, switching, POS terminal, embedded device as well as management information system (MIS) solutions.

It also offers advanced card solutions, including contact, contactless, and magnetic stripe card technologies and works with organizations to develop tailor-made payment solutions.