The Capital Markets Authority (CMA) says it has secured the surrender of potentially illegal gains amounting to Ksh458 million in the context of the ongoing investigations into insider trading on KenolKobil shares. The funds surrendered to date relate to 90
The investigations thus far have established that a number of investors had been advised and encouraged to trade based on what may constitute material price sensitive non-public information resulting in trades in Kenol Kobil shares before the October 24 2018 announcement by Rubis Energie of their intention to take over 100 percent ordinary share capital of KenolKobil Plc at a premium. The investigations relating to the balance of the accounts flagged in connection with suspicious trading activities are ongoing.
Upon review of the investigation findings and recommendations, the CMA board said it had resolved to initiate enforcement proceedings against the Kestrel Capital Executive Director,
“The recipients of the Notices to Show Cause have been granted an opportunity to formally respond to allegations made against them and to appear before the CMA Board to make any submissions before a determination is made.” it said in a statement.
According to CMA, investigation findings did not establish evidence of potential misconduct with regard to the KenolKobil Chief Executive, Mr David Ohana and therefore no enforcement proceedings will be initiated against him.