KCB, Kenya's largest bank by assets, has acquired a 75% stake in Riverbank Solutions, a Kenyan payments solutions provider, for $15.4 million. This strategic move is expected to expand KCB's digital service offerings, particularly to government counties, and give the bank an edge over other commercial banks focused on retail investors.

The acquisition comes at a time when both Nigeria and Kenya are forcing banks to recapitalise. In Nigeria, the deadline for recapitalisation is March 2026, while in Kenya, the finance committee is trying to approve KES10 billion ($78 million) as the threshold for banks to recapitalise within three years. Recapitalisation can save a whole banking sector and prevent retail customers from losing confidence in the system. However, it is a nerve-wracking process for small banks.

Riverbank Solutions offers payment systems to a diverse clientele, including manufacturers, microfinance institutions, retailers, county governments, and the military. Operating in Kenya, Uganda, and Rwanda, the company has been a key partner for KCB since 2013, particularly in agency banking services. The acquisition will allow KCB to expand its digital service offerings, particularly to government counties, which could be a useful clientele for the bank.

There is also the possibility for KCB to upsell its new corporate clients on its wealth management services through its subsidiary, KCB Capital Ltd, keeping its high-value customers in a closed loop system. The acquisition of Riverbank may have eaten deep into KCB's pocket, but it is a minor dent compared to what it makes annually. In 2024, the bank's profit after tax was KES 61.8 billion ($478 million) following strong business growth.

In other news, Caantin, a Zambian AI communications company, is building voice bots that can make thousands of phone calls a day for businesses, which could potentially disrupt the call centre industry. The startup launched in 2021 and has developed an AI voice bot that can make human-like conversations, complete with intonations, pauses, and interruptions. However, the product is not yet perfect, and the price, ₦117 ($0.076) per minute in Nigeria, is nearly nine times what telecom operators charge in the country.

Temu, a Chinese e-commerce startup, has partnered with Nigerian card provider Verve, allowing Nigerians to make international transactions using local cards. This move could affect fintechs that have been providing USD virtual cards to customers, as the demand for these cards may shrink. Local players like Jumia and Konga, whose embedded finance apps already support local payments, may not be affected by this development.

In cryptocurrency news, Bitcoin's current value is $87,253, with a 0.85% increase in the past day and an 8.64% decrease in the past month. Ether's current value is $2,050, with a 0.38% increase in the past day and a 24.52% decrease in the past month.

Finally, Lagos Innovates (LSETF) is offering workspace vouchers to startups in Lagos to ease rising operational costs. Startups can access subsidised co-working spaces with reliable internet, power, and a supportive entrepreneurial community. The program is open to Lagos-based startups looking to reduce overheads and focus on growth.