Nick Mwendwa: Why Former FKF Boss is Set to Become Ksh2 Billion Richer

Former Football Kenya Federation (FKF) president Nick Mwendwa is set to finalise a major business deal after the Competition Authority of Kenya (CAK) approved KCB Group's acquisition of a controlling stake in his fintech company, Riverbank Solutions.

The regulatory body has sanctioned the sale of a 75 percent share in Riverbank Solutions to the banking giant. While the official figure has not been disclosed, industry insiders estimate the transaction could be worth as much as Ksh2 billion.

According to Nation, the CAK's approval comes with specific conditions designed to protect existing clients and their data.

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The regulator has mandated that all current contracts with customers and merchants of Riverbank Solutions must be honoured post-acquisition. Furthermore, KCB Group is prohibited from using the fintech firm's third-party customer data for any purpose outside of Riverbank's direct operations.

"The acquirer shall ensure that all third-party transactional, customer, or merchant data collected or processed through the target’s infrastructure, networks, or platforms remain ring-fenced and are not shared, accessed, or utilised by the acquirer for purposes other than those strictly necessary for the operation of the target," the CAK stated as quoted by Nation.

The authority granted the approval after determining that the merger was "unlikely to prevent or lessen competition in the market for agency banking." The CAK noted the vertical nature of the merger, where two entities operating at different levels of the supply chain are combining forces.

"Riverbank operates in the upstream market by developing and supplying infrastructure and software solutions for digital payment processing," the regulator explained. "Whereas Riverbank does not serve end-users directly, it collaborates with licensed entities, such as KCB Group, in the downstream market to deliver services to consumers."

Founded by Mwendwa 15 years ago, Riverbank Solutions has established itself by forming revenue collection partnerships with county governments like Kisumu and Migori. The company also offers payment solutions to a diverse range of sectors, including banking, micro-finance, manufacturing, retail, and the military.

Last year, KCB Group CEO Paul Russo highlighted the strategic importance of the acquisition, stating it was aimed at expanding the bank's presence in the digital payments sector, having worked with Mwendwa’s firm since 2013.

As the deal awaits final approval from the Central Bank of Kenya, Mwendwa is in line to bank the huge sum, thanks to his business acumen.

Mwendwa was at the helm of FKF from 2016 until December 2024 when Hussein Mohammed was elected to replace him.