KCB Group, Kenya’s largest business financial institution by belongings, is ready to amass a 75% stake in funds options startup Riverbank Options for $15.4 million (KES2 billion) to strengthen its digital operation. The transaction awaits regulatory approval.
The acquisition marks KCB’s newest transfer to increase its footprint amid rising competitors in Kenya’s banking sector. KCB Group hopes to extend its potential to supply built-in digital companies with the Riverbank acquisition, which gives fee and income assortment programs to banks, e-commerce platforms, and authorities businesses.
“We’re actualizing new digital capabilities to ship customer-centered worth propositions by way of expertise to ensure seamless, dependable, safe, and revolutionary options for our clients,” mentioned Paul Russo, KCB chief government.
“Throughout the area, funds are anticipated to have the quickest development, suggesting a possibility to innovate.”
Based in 2010 by Nick Mwendwa, Riverbank Options gives fee programs to producers, microfinance establishments, retailers, county governments, and the navy. The corporate operates in Kenya, Uganda, and Rwanda.
Russo mentioned the financial institution has partnered with the startup since 2013, utilizing its platforms to run its company banking community. KCB plans to increase the platform to offer small and medium enterprises (SMEs) with monetary administration instruments, digital loans, and treasury administration.
Riverbank gives a variety of digital companies, together with Zed 360, a administration software for small companies; Swipe, which helps company banking companies; Zizi, a income assortment platform; and CheckSmart, designed for social funds. Kisumu and Migori counties at the moment use the corporate’s platform to gather revenues.
“We’ve made this strategic acquisition to allow us to supply a full stack answer. It is a nice alternative to maximise worth for our shareholders in the long run whereas strengthening the group’s aggressive place,” mentioned Russo.
KCB Group’s revenue after tax for 2024 grew 64.9% to $477.9 million (KES61.8 billion), pushed by sturdy income development throughout all enterprise segments. Non-interest earnings, together with earnings from non-banking companies, rose 16.5% to $522 (KES67.5 billion), supported by greater overseas trade buying and selling earnings.
