Kenya’s Competition Authority (CAK) has formally approved the KCB Group Riverbank acquisition, signaling a pivotal moment in the transformation of one of East Africa’s largest lenders into a technology-driven financial services provider.
The approval, announced in a Kenya Gazette notice on December 19, 2025, clears the way for KCB Group PLC to take control of 75 per cent of Riverbank Solutions Limited, subject to conditions designed to safeguard competition and data integrity in the burgeoning digital finance sector.
The injunction by CAK, published under the Competition Act (Cap. 504), concludes a transaction initially disclosed by KCB Group in March 2025 and marks one of the most closely watched deals in Kenya’s fintech space.
Riverbank Solutions, a home-grown payments infrastructure firm, has been a long-standing partner to KCB for more than a decade.
In its ruling, CAK emphasized that conditions attached to the approval are central to preserving competitive dynamics and preventing misuse of sensitive information.
A key stipulation requires the acquirer, KCB Group, to ring-fence all third-party transactional, customer, and merchant data processed through Riverbank’s platforms.
Such data must not be accessed or used by KCB beyond what is strictly necessary to operate Riverbank Solutions.
“The merging parties shall ensure that the Target Undertaking honours its current contracts with its customers as per the agreed contractual terms,” the authority stated in the Gazette notice, reinforcing that existing obligations to clients must be maintained post-acquisition.
The conditions reflect rising regulatory scrutiny globally of bank-fintech mergers, particularly where data handling and competition concerns intersect.
Regulators have been under pressure to ensure that legacy financial institutions’ strategic acquisitions of fintech firms do not lead to monopolistic practices or data concentration that could disadvantage consumers or stifle innovation.
For KCB Group, the deal underpins a broader strategic pivot from its traditional role as a commercial bank to an integrated platform focusing on digital banking, embedded finance, and payments solutions.
KCB’s interest in Riverbank is not incidental. The fintech, founded in 2010 by entrepreneur Nick Mwendwa, has built a suite of digital tools that serve clients across banking, microfinance, retail, manufacturing, and public sectors.
Its technological offerings include mobile payment systems, transaction switching services, point-of-sale (POS) applications, card technologies and other embedded solutions.
In a previous public statement when the transaction was first announced, KCB Group said the acquisition would “significantly strengthen its digital banking and payments capabilities.”
The firm has emphasized that Riverbank’s offerings will complement KCB’s existing digital channels and deepen its engagement with small, medium and micro-enterprises (MSMEs).
Riverbank Solutions operates not only in Kenya but also in Uganda and Rwanda, giving KCB potential regional leverage for its digital services portfolio.
The fintech’s popular platforms, including Zed 360 (a business management suite), Swipe (agency banking support), Zizi (revenue collection) and CheckSmart (social payments), are seen as valuable assets that can be woven into KCB’s broader digital strategy.
Beyond traditional banking interfaces, these tools offer operational efficiency and analytical insights for MSMEs, a segment critical to East Africa’s economic growth.
Integration of Riverbank’s suite could enable KCB to offer holistic services, ranging from financial reporting and inventory management to payroll solutions and revenue digitization.
The acquisition also aligns with a trend among larger banks across Africa, where acquiring or partnering with fintech firms has become a strategic imperative.
Competition from digital challengers has intensified in recent years, triggered by increased smartphone penetration, rising customer demand for seamless digital transactions, and innovative business models that leverage data and cloud-native infrastructure.
Despite the CAK endorsement, the KCB Group Riverbank acquisition is not yet complete. Final clearance from the Central Bank of Kenya (CBK), the regulator responsible for licensing and supervising financial institutions, remains outstanding.
CBK’s approval is mandatory given the implications for financial stability, risk management, and systemic oversight.
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