Abraaj Kenya Advisers Limited, part of The Abraaj Group- a private equity firm operating in six continents, has folded its operations in Kenya.
The Dubai-based fund manager has already sent a notice to Capital Markets Authority (CMA), detailing its intention to fold up in Kenya and that the Authority has accepted the request for revocation of the firm’s license.
“Notice has therefore been given to members of the public to raise any unresolved and outstanding issues (if any) with the company and also notify the CMA on the same, within forty-five (45) days from the date of publication of this notice,” said Paul Muthaura, Chief Executive, CMA in gazette notice dated 12 November, 2019.
According to requirements of the Capital Markets Act, upon lapse of the forty-five (45) days and no notification to the Authority on any outstanding issues, the licenses shall stand revoked.
The private equity firm had investments in Java, Avenue Hospital, Nairobi Women’s Hospital, UAP Group, ARM, and Brookside Dairy.
It has offloaded its stakes in most of these firms including its 13.6 per cent stake in UAP to Old Mutual in a transaction worth KSh 5.6 billion. The firm previously owned 10 per cent of Brookside Dairies and 56.2% stake in Avenue Group, a Kenyan healthcare chain.
Trouble for Abraaj Group intensified in July 2019. This is after the Dubai Financial Services Authority imposed a fine of US$315 million on Abraaj for deceiving investors, misusing investor funds to cover operational expenses, and carrying out unauthorized activities.
This huge financial penalty followed the June indictment of Arif Naqvi and other senior executives by US prosecutors on charges of defrauding investors.