Centum Investment Company has officially sold a controlling 60 percent stake in Nabo Capital to Rock Investment Bank in a landmark transaction that signals continued consolidation within Kenya’s investment management industry. While the financial terms of the deal were not publicly disclosed, estimates place the transaction value at approximately KSh271 million. The acquisition hands Rock Investment Bank majority ownership of Nabo Capital, one of Kenya’s established fund management firms, ending Centum’s majority control after more than a decade. The move represents Rock’s largest expansion to date and significantly strengthens its presence beyond traditional investment banking services.
Nabo Capital was established by Centum in 2013 to capitalize on the growing demand for professional investment management among institutions, pension funds, corporates and retail investors. Over the years, the company has built a diversified portfolio managing government securities, listed equities, corporate bonds and money market investments. Speaking after the acquisition, Nabo Capital Chief Executive Officer Pius Muchiri welcomed Rock Investment Bank as the company’s new strategic shareholder, expressing confidence that the partnership would accelerate growth by combining complementary strengths in investment management and capital markets.
For Rock Investment Bank, the acquisition provides an opportunity to diversify revenue streams through recurring fund management income while strengthening its advisory, capital raising and wealth management offerings. The investment bank has built a strong reputation in mergers and acquisitions, corporate restructuring and stockbroking, making the acquisition a natural extension of its services. The transaction also reflects Centum’s broader strategy of portfolio optimization. In recent years, the investment company has gradually reduced holdings in several businesses to redirect capital toward sectors expected to generate stronger long-term returns. Earlier this year, Centum completed the sale of its remaining stake in Sidian Bank, ending a relationship that had lasted over two decades.
Kenya’s asset management sector continues to experience strong growth as investors increasingly seek professionally managed investment products. Money market funds, in particular, have attracted record inflows amid high interest rates, offering attractive returns compared to traditional bank deposits.The country’s growing middle class and increasing financial literacy have also contributed to rising demand for wealth management solutions. As competition intensifies among fund managers, strategic partnerships and acquisitions such as the Rock-Nabo transaction are expected to become more common.
Industry analysts believe the acquisition positions both firms to capitalize on Kenya’s expanding investment landscape. Rock gains immediate access to an established asset management platform, while Nabo benefits from additional capital, expertise and expanded distribution channels. The deal ultimately underscores the evolution of Kenya’s financial services sector, where firms are increasingly pursuing strategic alliances to enhance competitiveness, broaden service offerings and meet the changing investment needs of individuals and institutions.
