Rock Investment Bank has become the majority owner of Nabo Capital after acquiring a 60 per cent stake in the investment management firm from Centum Investment Company, marking a significant shift in Kenya’s asset management industry.
The deal, which has received approval from the Capital Markets Authority (CMA), sees Centum reduce its ownership in Nabo Capital from full control to a 40 per cent stake. As a result, Nabo Capital will no longer operate as a subsidiary of Centum but will instead be treated as an associate company in the investment firm’s financial statements.
Although the parties did not disclose the value of the transaction, the acquisition brings together two established players in Kenya’s financial sector. The partnership is expected to strengthen Nabo Capital’s position by combining its investment management experience with Rock Investment Bank’s expertise in capital markets, corporate finance and distribution network.
The move comes at a time when Kenya’s investment management industry is becoming increasingly competitive, with firms seeking strategic partnerships to attract more institutional and retail investors while expanding the range of products available in the market.
Centum said it remains committed to the business despite giving up majority control.
“Following this development, Nabo will cease to be a subsidiary of Centum and will become an associate company, with Centum retaining a 40 per cent shareholding,” the company said.
Adding
“Pleased to continue as a significant shareholder alongside Rock Investment Bank.”
Nabo Capital was established in 2012 by Centum as part of the group’s strategy to diversify into financial services. Over the years, it has grown into one of Kenya’s leading investment management firms, offering services including fund management, wealth management, private wealth advisory, and institutional investment solutions. The firm manages investments for pension schemes, insurance companies, corporations, development institutions and high-net-worth individuals.
Rock Investment Bank, on the other hand, has built its reputation in stockbroking, corporate finance, research, wealth management and capital markets advisory. The acquisition gives the bank an immediate foothold in the fast-growing asset management business while creating opportunities to offer clients a broader range of investment products on a single platform.
Expanding Nabo Capital
The companies said the partnership is expected to accelerate growth by increasing assets under management, developing new investment solutions and expanding Nabo Capital’s footprint in Kenya and across the East African region.
Industry analysts say the transaction reflects a broader trend in the financial services sector, where institutions are pursuing mergers, acquisitions and strategic partnerships to achieve scale, improve efficiency and respond to changing investor needs. Demand for professionally managed investment products has continued to grow as more individuals and institutions seek alternatives to traditional savings and investment options.
For Centum, the transaction is also consistent with its recent strategy of unlocking value from its portfolio through partnerships while retaining stakes in businesses with long-term growth potential. By remaining a significant shareholder, the investment company will continue to benefit from Nabo Capital’s future performance while allowing the firm to pursue its next phase of growth with a new majority investor.
The acquisition was announced in accordance with the Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023, following regulatory approval by the Capital Markets Authority.
The companies have not indicated whether there will be changes to Nabo Capital’s management team or day-to-day operations, but said they will work together to strengthen the firm’s market position and expand its reach in the region.
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