Kestrel Capital (East Africa) Limited has issued a notice to the Capital Markets Authority (CMA) concerning their intention to cease their investment banking activities.
In a notice appearing in a gazette notice, the Authority has accepted this request by the fund manager for its license to be revoked.
However, Kestrel Capital will continue with its activities as a Stockbroker as licensed by the CMA.
Kestrel Capital issues a request
“Notice is given to members of the public to raise any unresolved and outstanding issues(if any) to the Authority on the same within 45 days from the date of publication of this notice,” said Wyckliffe Shamiah, Chief Executive, CMA.
In line with requirements of section 27(1)(b) of the Capital Markets Authority, the regulator said upon the lapse of the 45 days and no notification to the Authority on any outstanding issues, the license shall stand revoked.
Kestrel Capital is one of the leading stock brokerage and bond traders on the Nairobi Securities Exchange (NSE) with a strong bias towards institutional and high network individuals.
The CMA granted Kestrel Capital( East Africa) an investment license in 2016 after meeting all the statutory requirements, including issued and paid-up KSh 250 Million capital.
Bearish conditions at the NSE
Kestrel Capital is folding its investment banking wing when the NSE has been on a downside. This follows the exit of foreign investors, who took flight at the onset of the COVID-19 pandemic.
Apart from bearish conditions at the NSE, trouble for Kestrel Capital first begun when its former CEO Andre DeSimone resigned following investigations over his possible involvement in the Kenol Kobil Insider trading.
While a tribunal has not found DeSimone guilty of any wrongdoing, CMA has appealed the ruling and wants the former Kestrel Capital boss penalised.