South African investment banking group African Alliance says it will expand its offering in financial services to grow its revenue.
The group further says it will cease operating its stockbroking unit at the Nairobi Securities Exchange at the end of June 2020.
In a statement, the board said the move was necessitated by declining business at the NSE and the need to capitalise on existing gaps in the market.
“The AAKIB Board, along with management, constantly reviews the business segments in which the Company operates and as a result of the structural decline in the agency trading model in both the local and global financial markets has decided to divest from its Stockbroking activities,” said the firm in a statement.
According to its half-year results, African Alliance saw its commissions drop from KSh 84.2 Million in 2018 to KSh 42.7 Million in June 2019.
The firm will carry out a cash refund to clients and those that have investments in the company will be moved to a broker selected by African Alliance and licensed by Capital Markets Authority.
In April 2019, it announced the closure of its Ugandan brokerage business, citing low market activity.
It operates in Nigeria, Ghana, Malawi, Zimbabwe, Zambia, Botswana, and Mauritius.
Stock brokerage firms Apex Africa Capital and AIB Capital have finalised their merger agreements.
AIB and Apex will merge their respective Stockbrokerage, Bond Trading, Research and Corporate Finance businesses in Kenya to operate under a joint venture Company.