The Capital Markets Authority (CMA) has asked Genghis Capital to provide a repayment roadmap after the investment firm was caught up in a US$2.7mn debt row with a South African businessman.
- The creditor, Auswell Mashaba, has tasked Moran auctioneers to seize office assets belonging to Genghis Capital over US$2.7 million in unpaid debt.
- The investment firm’s efforts to stop the auction met dead ends on Monday when the High Court declined to certify Genghis’ application as urgent saying the court did not find it appropriate to certify it as such.
- Genghis Capital reportedly took a US$2.3 loan in January 2017 to be repaid at 7.25% interest which the SA businessman later sought a ruling for a total repayment of US$3.1 million at 7.25% until paid in full.
“In line with its investor protection mandate, the Capital Markets Authority (CMA) is engaging Genghis Capital Limited to get a roadmap on how the firm intends to address the outstanding debt owed to its stakeholder,” CMA said in a statement.
CMA added that client assets were held separate from operation funds of Genghis Capital under CMA regulations.
In a public statement by Edward Wachira, CEO of Genghis Capital, said the firm is “financially strong and resilient.” “As a market Intermediary dealing in bonds and stocks, assets are securely held by a regulated custodian and CDSC, respectively, under the oversight of NSE and CMA. This framework ensures a clear separation between client assets and operational activities, providing full protection for your investments, regardless of any internal matters,” Wachira said in the Wednesday statement.
The firm sent out text messages with a similar message to its investors on Thursday morning, as it moves to calm markets.
Genghis Capital has been caught up in a parallel row with its partner Safaricom over Mali, where the two companies are partners. In a protest letter dated 3rd December 2024 and seen by The Kenyan Wall Street, the investment firm accused the telco of uncompetitive actions including migrating customers to its own money market fund, and restricting double registration.
In a response a few days later, Safaricom denied the allegations and said that the investment firm was delaying a migration of the Mali platform from Genghis to Safaricom to “ensure stability to our customers.” The row followed the licensing of Ziidi Money Market Fund, a parallel unit trust scheme, which is owned by Safaricom in partnership with Standard Investment Bank, ALA Capital Limited, and Sanlam Investments (EA).
