Centum Investment has sold a 60% stake in Nabo Capital to Pan-African lender Rock Investment Bank, reducing its holding in the Nairobi-based investment manager to 40%.

The transaction means Nabo will no longer operate as a subsidiary of the Nairobi Securities Exchange-listed investment company and will instead be classified as an associate. Financial terms of the deal were not disclosed.

Centum announced the transaction under Regulation 64 and Part D of the Capital Markets (Public Offers, Listing and Disclosures) Regulations, 2023.

Partners seek to expand investment business

Centum said the partnership brings together three complementary investment institutions, with the company remaining a long-term strategic shareholder in Nabo.

The firms plan to increase Nabo’s assets under management, introduce additional investment products, widen its distribution network and expand its presence in Kenya and other African markets.

The transaction also advances Rock Investment Bank’s ambition to grow Nabo into a larger investment management business by combining the capabilities of the three organizations. For Centum, the sale is consistent with its strategy of partnering with established institutions to strengthen portfolio companies while retaining exposure to their future growth.

“We believe that, together with Rock Investment Bank and the Nabo team, we have assembled the right combination of capabilities, talent and strategic vision to build one of the region’s leading investment management businesses, delivering innovative investment solutions and creating lasting value for our clients, shareholders and the broader economy,” Centum said.

Companies strengthen long-term positions

Rock Investment Bank, a Capital Markets Authority-licensed investment bank headquartered in Nairobi, provides investment banking, advisory and wealth management services to corporate, government and institutional clients across Africa.

Centum, listed on both the Nairobi Securities Exchange and the Uganda Securities Exchange, is one of East Africa’s largest investment companies, with interests spanning real estate, private equity, financial services, consumer goods, agribusiness and energy.

The company is historically associated with the late Kenyan businessman Chris Kirubi. Following his death in 2021, his interests were passed on to his heirs, Mary-Ann Musangi and Robert Kirubi, including stakes linked to Centum and other holdings such as KCB Group and Haco Industries.

Nabo Capital spins off independently

Founded as Centum’s internal asset management unit, Nabo Capital became an independent company in 2013 and has since established itself as a wealth and investment management firm serving institutional and individual investors across the region.

Centum Group Chief Executive Officer and Managing Director James Mworia, who has led the company since 2008, continues to oversee the group’s investment strategy as Nabo begins its next phase as an associate company under the new ownership structure.