Old Mutual exits Nairobi’s stockbroking scene as fintech Kweli Capital steps in, reshaping Kenya’s capital markets with a digital-first push.
Old Mutual Sells NSE Unit to Fintech Kweli
Nairobi — Old Mutual Kenya has sold its Nairobi Securities Exchange (NSE) stockbroking unit to fintech Kweli Capital. 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 Kweli, the acquisition provides a rare chance to enter the capital markets as a licensed brokerage. The action mirrors what the Kenyan Government is considering doing with Safaricom, the country’s most profitable company.
Old Mutual Shifts Strategy
Old Mutual announced the divestment in August. CEO Arthur Oginga said the decision was part of a strategy to concentrate on faster-growing lines.
“Stockbroking has become increasingly difficult due to shrinking liquidity and high compliance costs,” Oginga said. “We are now directing resources toward insurance and investments, where we see stronger growth.”
The insurer’s parent company, Old Mutual Ltd., recently reported a 21% jump in adjusted headline earnings to 7.4 billion rand ($393 million) in the first half of 2024. Gains were driven by rising demand for health coverage and long-term savings products.
Kweli Bets on Digital Growth
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.
“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. Its goal is to target young, tech-savvy investors priced out of traditional brokerage firms.
Kenya’s Market Pressures
Kenya’s brokerage industry has struggled in recent years. Equity turnover fell to KSh 82 billion ($632 million) in 2023, nearly 40% lower than five years earlier, according to the Capital Markets Authority (CMA).
Foreign investors have pulled back, while fewer than 200,000 Kenyans trade stocks actively out of a population of more than 50 million.
“Technology is reshaping the industry,” said CMA acting CEO Wyckliffe Shamiah. “We want to foster innovation while protecting market integrity.”
Other players such as Hisa and Chipper Cash have already popularized app-based investing. Kweli now enters that space with the legitimacy of a licensed broker.
Analysts Weigh In
Market experts view Old Mutual’s exit as part of a global shift. Traditional firms are stepping back from businesses with thin returns. Fintechs, by contrast, are betting that scale and digital adoption will eventually pay off.
“Kweli has the chance to attract mass retail adoption,” said Aly-Khan Satchu, a Nairobi-based market analyst. “But success depends on trust and financial literacy.”
The CMA has promised to expand regulatory sandboxes and allow fintechs to test new models. If Kweli proves successful, Kenya could see lower trading costs, deeper liquidity, and more inclusive access.
What Comes Next
For Old Mutual, the sale sharpens its focus on core businesses with stronger earnings potential. For Kweli, the acquisition is a gamble on technology-driven investing.
If the strategy works, the deal could reshape how Kenyans invest and provide a model for other African markets. It could also accelerate a long-awaited shift toward broader retail participation in capital markets.