CAK Clears KCB Group’s Acquisition of Fintech Riverbank, A Big Step in Digital Banking Evolution

By benadeta mwaura - Reporter

Kenya, January 26 2026 -The Competition Authority of Kenya (CAK) has approved the proposed acquisition of a controlling stake in Riverbank Solutions Limited by KCB Group PLC, clearing a major regulatory milestone in the bank’s digital transformation strategy.

The deal, originally announced in March 2025, signals growing convergence between traditional banking and fintech infrastructure in Kenya and across East Africa. In a Kenya Gazette notice dated December 19, 2025, CAK authorised the transaction under Section 46(6)(a)(ii) of the Competition Act, subject to specific conditions designed to protect competition and safeguard customer data.

Under the conditions:

KCB must ringfence all thirdparty transactional, customer and merchant data processed through Riverbank’s platforms, ensuring it is not accessed or used by KCB beyond what’s necessary for operating Riverbank’s business.

Riverbank must honour its existing contractual obligations, preserving continuity for its current customers. These safeguards aim to prevent anticompetitive use of sensitive data as the acquisition integrates Riverbank’s technology into a larger banking ecosystem.

Riverbank Solutions is a Kenyan fintech specialist in digital payments infrastructure, offering services such as mobile payment systems, transaction switching, point of sale applications, and embedded device solutions that power commerce across sectors like banking, microfinance, retail and public institutions.

For KCB Group, already one of East Africa’s largest financial services providers, the acquisition is part of a broader push into digital banking and platformbased financial services. The bank’s goal is to strengthen its payments, data and digital capabilities while positioning itself for growth in a rapidly evolving financial ecosystem.

Industry analysts note that banks across the region are increasingly turning to acquisitions, rather than purely internal development, to scale fintech integrations and meet rising demand for seamless digital solutions.

Similar strategic moves include KCB’s earlier plan to acquire a stake in Pesapal, another major digital payments platform. The deal has several implications for Kenya’s financial and business ecosystem:

1. Accelerating Digital Finance Adoption

2. Strengthening SME and MSME Platforms

Riverbank’s platforms such as Zed 360, which include business management tools like inventory and payroll systems, could enhance KCB’s value proposition to small and medium sized enterprises (SMEs), a vital engine for economic growth.

3. Data Protection and Consumer Trust

By ringfencing transactional data, regulators are aiming to balance innovation with data privacy and security, helping keep trust high among customers in a time when digital payment data is increasingly valuable.

4. Competitive Pressure and Consolidation

As larger banks integrate fintech capabilities, smaller lenders may face competitive pressure to innovate or pursue consolidation, potentially reshaping the structure of the regional banking industry. CAK’s approval now moves the acquisition one step closer to completion, but it still awaits Central Bank of Kenya (CBK) clearance, as required for major financial sector deals.

Regulatory alignment among competition, financial and data protection authorities will be key before the transaction is finalised. The Competition Authority of Kenya’s approval of KCB Group’s acquisition of Riverbank Solutions marks a milestone in Kenya’s digital banking evolution.

By blending traditional banking depth with fintech agility, under robust competition and data safeguards, the deal reflects broader trends in financial sector transformation and digital innovation across East Africa.