The return of corporate deals, such as fresh listings at the Nairobi bourse, bond issuances and mergers and acquisitions, has seen increased demand for investment banking licences that brokers were dumping over five years.
The Capital Markets Authority (CMA) issued at least three new investment bank licences in the first quarter of 2026 to advisory firms and stockbrokerage firms upgrading their work permits.
This has triggered a shift in the licensing regime in a market that has demand for permits dominated by investors seeking fund management licenses on the back of pooled investments like money market funds (MMFs).
It also marked a reversal witnessed in the years between 2011 and 2019, where investment banking firms downgraded their licences to stockbrokers following a draught in deals amid higher permit fees.
But the return of the deals has made the market fertile, forcing advisory firms and stockbrokers to seek investment banking licenses—which they need to broker and guide deals.
The recent initial public offering of the Kenya Pipeline Company (KPC), which saw the first payout of a success fee to the lead adviser, and the issuances of corporate bonds by Safaricom, EABL and I&M, have signalled the ramp-up in deal activity for investment firms.
Investment banks cover a wider mandate, including advising on offers of securities to the public, corporate financial restructuring, takeovers, mergers, privatization and the underwriting of securities.
The institutions can also engage in the business of stockbrokers, a dealer and a fund manager of collective investment schemes.
“Between 2019 and 2025, we did not see a lot of advisory transactions. Now we are seeing a lot of advisory opportunities returning,” said Mr Eric Ruenji, the chairman of Theo Capital Holdings.
The drought in corporate deals coincided with the depths of the near decade-long bear market that began in 2015, sending stock prices and overall market enthusiasm lower.
The bear run was edged out in late 2024 as macro-economic stability gave rise to an equities rally and a rise in market interest. In the opening months of 2026, CMA dished out three new investment bank licences to firms including Rock Advisors, Victoria Wealth Management and Fintrust Securities.
This followed the issuance of a similar license to TPXM Global Kenya Limited in the third quarter of 2025.
Securities Africa Kenya Limited, now Capital A Investment Bank, also recently upgraded from a stock brokerage to an investment bank.
The issuance of the licences was amid a strong market performance for NSE equities, whose peak was defined by the public offering of KPC shares in March this year.
Corporate bond issuances have also taken hold, including medium note programmes (MTNs) by EABL, which raised Sh16.7 billion.
Safaricom, I&M Bank and the Kenya Mortgage Refinancing Company (KMRC) are some of the bonds that have also come to market in recent months, raising Sh19.9 billion, Sh13 billion, and Sh3 billion, respectively.
The frequency of the high-value deals are generating outsized advisory and performance fees.
The pipeline IPO, which raised Sh106.3 billion from the sale of the State’s 65 percent stake in the company, earned the Faida Investment Bank, who were the lead transaction adviser, a Sh1.16 billion bonus for hitting the target.
Fincorp Credit, the parent firm of Fincorp Securities, which is the latest firm to get the lucrative license, says the approval has been driven by clients’ demands for broader capital market solutions.
“After being licensed as an authorized securities dealer in July last year, Fintrust Securities quickly discovered that customer appetite extended well beyond its initial offerings. From equities to money market products, demand for broader capital-market solutions was unmistakable,” said Mr Gibson Wachaga, Fincorp Credit chief executive officer.
“Securing the investment bank license is therefore both a response to market realities and a natural progression in Fincorp’s journey.”
Players like Kestrel Capital closed their investment banking section in 2021 to concentrate on the stock brokerage business amid the drought in advisory services.
This publication has confirmed that the stock brokerage is now working to regain the investment bank license as it sees a rise in corporate deals.
The push for the licence by Kestrel and peers will be incentivized by the recent revision in the minimum paid-
up capital of investment banks from Sh250 million at present to Sh150 million by December 2026.
Higher capital requirements at the start of the last decade in 2011 forced some players to revert to stock brokerages, while others applied to the CMA for the revocation of licences.
Investment banks like ApexAfrica Capital Limited, Afrika Investment Bank Limited, Drummond Investment Bank Limited, Kestrel Capital and Sterling Investment Bank downgraded their licenses after the minimum capital was raised from Sh30
million to Sh250 million.
Sterling Capital (formerly Sterling Investment Bank) has since reestablished itself as an investment bank. CMA has licensed 20 investment banks at present.