Kenya-based Rock Investment Bank has acquired a controlling 60 percent stake in fund manager Nabo Capital from Centum Investment Company in a deal estimated at Sh271 million, ending the listed firm’s majority ownership after more than a decade.
The transaction hands Rock immediate control of one of Kenya’s established investment managers as competition for institutional and retail savings intensifies among financial services firms.
The deal also marks the biggest expansion yet by Rock under managing director Dr Belgrad Kenne, the investment banker who led advisory work on the Kenya Pipeline Company (KPC) initial public offering.
The value of the transaction was not disclosed, but Nabo Capital had a fair value of Sh452.3 million as of March 2025 when Centum owned it 100 percent, according to the Nairobi Securities Exchange-listed firm’s annual report.
Nabo Chief Executive Pius Muchiri said the acquisition would support the firm’s next phase of growth by combining its investment management business with Rock’s capital market operations.
Strategic shareholder
“We are delighted to welcome Rock Investment Bank as our strategic shareholder. Their investment is a strong endorsement of our business and our team,” said Mr Muchiri.
“Together, we look forward to building one of the region’s leading investment management platforms by combining our complementary strengths and delivering innovative investment solutions to our clients.”
Nabo was established by Centum in 2013 to tap growing demand for professional fund management from pension schemes, corporates and wealthy individuals.
The company today manages investments across government securities, listed shares, corporate bonds and money market instruments for both institutional and retail investors.
The acquisition ends Centum’s control of one of its longest-held financial services businesses as the investment company continues reshaping its portfolio through selective disposals and restructuring.
Centum has in recent years sold or reduced holdings in several businesses while redirecting capital into sectors it considers capable of delivering stronger long-term returns.
Corporate restructuring
The latest was the offloading of what was its remaining 13.6 percent stake in Sidian Bank in March this year, ending its 25-year relationship with the lender.
Nabo’s acquisition broadens Rock’s business beyond its traditional investment banking operations into recurring fund management income.
Rock has built its reputation advising companies on mergers, acquisitions, capital raising and corporate restructuring while also offering stockbroking and wealth management services.
Kenya’s asset management sector has grown rapidly over the past decade as pension assets continue rising and more retail investors shift savings into professionally managed investment products.
Money market funds have recorded particularly strong growth in recent years as investors sought higher returns than conventional bank deposits during periods of elevated interest rates.
Kenya’s growing middle class has also created fresh demand for professionally managed investment products as households increasingly diversify savings beyond property.
