Kenyan technology-driven investment firm Kweli Capital has acquired a majority stake in brokerage Old Mutual Securities Ltd (OMS), marking a significant strategic expansion into regulated financial services and signaling a new chapter in East Africa’s evolving capital markets landscape.
The acquisition will see Kweli Capital take over the Nairobi-based brokerage from the Old Mutual Group, positioning the firm to build a full-service investment bank targeting East Africa’s growing capital markets. The transaction combines Kweli Capital’s expertise in structured finance and innovative technology platforms with OMS’s established brokerage operations and Nairobi Securities Exchange membership.
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Strategic Rationale Behind the Acquisition
Old Mutual Securities has had a tough financial run in recent years, mirroring the challenging stock brokerage business, which has taken a hit in the past decade from reduced market activity. Last year, the brokerage firm posted a narrow Sh6.5 million profit, marking a turnaround after losses of Sh6.5 million in 2023, Sh42.3 million in 2022 and Sh6.5 million in 2021.
The acquisition provides Kweli Capital with immediate market access and an established client base. “OMS [Old Mutual Securities] already operates a fully licensed, compliant platform, ensuring seamless entry into the capital markets without the cost and time of pursuing new licensing. Today, OMS serves over 30,000 clients, giving Kweli Capital an immediate market footprint and credibility that would take years to build organically,” the firm explained in response to business media inquiries.
For Old Mutual Group, the decision to divest Old Mutual Securities was made to streamline the East Africa portfolio to concentrate on insurance, asset management and banking lines of business. The decision to exit stock brokerage was made on February 20, 2025.
Kweli Capital’s Proven Track Record in Financial Innovation
Founded in 2018, Kweli Capital has established itself as a key player in structuring financial and property market innovations across East Africa. The firm is best known for developing the Kenyan government’s Boma Yangu affordable housing platform, which has registered over 34,000 active savers and facilitated the country’s first privately-run tenant purchasing scheme.
The Boma Yangu platform serves as the gateway into Kenya’s Affordable Housing Program, allowing individuals to save towards home ownership and access mortgages and the National Tenant Purchase Scheme online. Currently, there are over 195,578 housing units under development across 111 constituencies in 44 out of the 47 counties through this government initiative.
The firm has also developed the Amaka Umbrella Fund, which mobilizes major pension schemes and financial institutions to provide private-sector funding. In 2023, the firm appointed Rebecca Nabwire Osogo-Okwara as its CEO, who previously headed Institutional Sales at Britam Asset Managers.
Old Mutual Securities: A Legacy Player in Kenya’s Capital Markets
Old Mutual Securities carries a deep legacy in Kenya’s capital markets. It was incorporated in 1992 as Reliable Securities Limited and was the eighth licensed stock broker to operate in the Nairobi Securities Exchange (NSE). The brokerage has weathered various market cycles and maintained its position as one of Kenya’s established financial services providers.
Old Mutual held a 75 percent stake in Old Mutual Securities, where minority shareholders include First Quantum Holding Limited, TransAfrica Capital (Proprietary) Limited and Josphert Milimu Konzolo. This ownership structure will now transition to Kweli Capital’s majority control, though specific deal terms and valuation details have not been disclosed.
Market Context: NSE’s Strong Performance Amid Industry Consolidation
The acquisition comes at a time when Kenya’s capital markets are experiencing renewed momentum. The Nairobi Securities Exchange PLC reported impressive financial performance for 2024, with profit after tax soaring by over 500% to KSh 116.3 million, compared to KSh 18.4 million in 2023. Equity market turnover rose by 20.10% to KSh 105.97 billion, while bond market turnover achieved a record high of KSh 1.5 trillion, marking a 140% year-on-year increase.
Market capitalisation surged to KSh 1.9 trillion from KSh 1.4 trillion, and eight Kenyan companies were added to the MSCI Frontier Markets Indices. The NSE was recognized as the best-performing market in Africa in dollar returns according to MSCI.
However, the broader brokerage industry has faced challenges. Kenya’s brokerage industry has struggled in recent years, with equity turnover falling to KSh 82 billion ($632 million) in 2023, nearly 40% lower than five years earlier, according to the Capital Markets Authority (CMA).
Changing Dynamics in Kenya’s Financial Services Sector
Analysts say the deal underscores a trend of homegrown African firms leveraging technology and local expertise to consolidate and expand within the region’s financial services sector, challenging traditional incumbents. This mirrors global trends where fintech companies and technology-driven firms are acquiring traditional financial services businesses to combine innovation with established market presence.
Legacy stockbrokers, including Discount Securities, Sterling Capital and Dyer & Blair, now hold a minority 20 percent share of the NSE from full ownership a little over a decade ago. This shift reflects the increased consolidation in Kenya’s brokerage industry, with deep-pocketed institutions seeking opportunities in the country’s growing capital markets.
The transformation gained momentum following high-profile listings such as Safaricom in 2008 and Equity Bank in 2006, which attracted significant foreign investment and elevated the profile of Kenya’s capital markets globally.
Leadership and Strategic Vision
Kweli Capital’s leadership team brings diverse expertise to the acquisition. According to the company’s website, Kweli Capital’s board includes Kris Senanu (Chairman), Calvin Nyachoti, Kennedy Kipng’etich, and Phillipa Mbonye. This experienced leadership combines backgrounds in finance, technology, and business development.
The strategic vision extends beyond traditional brokerage services. “Our mission is to democratize wealth creation,” said Kweli CEO James Kariuki. “This deal strengthens our platform and opens access for more Kenyans to invest.” The company plans to expand fractional trading, regional services, and new digital products, targeting young, tech-savvy investors who have been priced out of traditional brokerage firms.
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Technology Integration and Digital Innovation
The acquisition positions Kweli Capital to leverage its technology expertise in transforming traditional brokerage operations. Kweli Capital, founded in 2018, has focused on mobile-based trading and financial education. The purchase gives it direct access to the NSE, rather than relying on intermediaries.
This technological focus aligns with broader market trends toward digitalization of financial services. The firm’s experience with the Boma Yangu platform, which operates across USSD, mobile web, and web portal interfaces, demonstrates its capability to create accessible, user-friendly financial technology solutions for diverse user bases.
Revenue Structure and Market Opportunities
The brokerage industry in Kenya operates on established commission structures that provide predictable revenue streams. Brokers charge a commission of 1.5 percent for equity transactions above Sh100,000 and 1.76 percent for transactions below this amount. Net brokerage commissions on bonds are meanwhile set at 0.024 percent on the value of bond transactions in the secondary market.
Stockbroking firms on the NSE have been fighting for new revenue streams after the stock market boom that brought hundreds of thousands to the market dimmed. The thousands of new investors, notably retail dealers, translated to high revenues for brokerages.
Old Mutual’s Strategic Refocusing
The divestment aligns with Old Mutual Group’s broader strategic shift. Besides selling Old Mutual Securities, the firm disclosed that it would offer its entire Sh19 billion real estate portfolio for sale, including the 33-storey Old Mutual Tower in Nairobi’s Upper Hill. The Group has other properties, including land in Uganda, an office block in Rwanda and apartments in South Sudan.
This reflects a move away from the financial supermarket model that was popular in previous decades. The sale marks another turn of its Kenyan strategy that hinged on the financial-supermarket model, which pulls together insurance, banking, securities, and other financial operations under a single roof. The model was in vogue in the decades leading up to 2010, sparking a frenzy of buyouts of stockbrokerage firms, notably by banks, seeking to emulate the “one-stop shopping” pioneered by global financial services firms like Citigroup Inc in the 1990s.
Regional Expansion Potential
The acquisition positions Kweli Capital for potential regional expansion across East Africa. Kenya’s capital markets serve as a gateway to the broader East African Community, and the firm’s technology-driven approach could facilitate cross-border investment and trading activities.
With the ongoing development of regional financial integration initiatives and the growth of cross-border investment flows, the combined entity could capitalize on opportunities across Uganda, Tanzania, Rwanda, and other EAC markets.
Industry Implications and Future Outlook
The deal reflects how traditional finance firms are retreating from low-margin brokerage businesses, while digital-first startups push into the market. The exit frees Old Mutual to focus on insurance, pensions, and asset management.
For the broader Kenyan financial services sector, this transaction signals the continuing evolution toward technology-driven solutions and the consolidation of traditional players. It also demonstrates the maturation of Kenya’s fintech ecosystem, where companies can successfully acquire established financial services businesses.
Challenges and Risk Mitigation
While the acquisition presents significant opportunities, it also involves inherent challenges. The integration of technology platforms, regulatory compliance across different business lines, and the need to maintain service quality during transition periods all require careful management.
“Importantly, the acquisition brings a skilled team with deep expertise in securities trading, safeguarding continuity and strengthening execution,” Kweli Capital noted, highlighting their approach to managing transition risks through retention of experienced personnel.
Conclusion: A New Chapter for Kenya’s Capital Markets
The acquisition of Old Mutual Securities by Kweli Capital represents more than a simple change in ownership—it symbolizes the evolution of Kenya’s financial services sector toward technology-driven, locally-owned institutions that combine innovation with established market presence.
As Kenya’s capital markets continue to mature and attract both domestic and international investment, transactions like this one demonstrate the dynamic nature of the sector and the emergence of homegrown players capable of challenging traditional incumbents through technological innovation and strategic positioning.
The success of this acquisition will likely influence other potential consolidation activities in Kenya’s financial services sector and could serve as a model for similar technology-driven acquisitions across other African markets. For investors and market participants, it signals a new era where traditional boundaries between fintech and established financial services continue to blur, creating opportunities for more efficient, accessible, and innovative financial solutions.
The deal ultimately positions both companies for growth in Kenya’s expanding economy while contributing to the broader goal of democratizing access to capital markets and wealth creation opportunities for ordinary Kenyans.
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By: Montel Kamau
Serrari Financial Analyst
16th September, 2025
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