The Capital Markets Authority of Kenya (CMA Kenya) says it has completed the outstanding aspects of the insider trading investigations into the KenolKobil counter. In a notice, CMA said it has secured the surrender of an additional Ksh19 million of potentially illegal gains through No-Contest Settlement Agreements from an additional 5 traders whose accounts were frozen. This further recovery is in addition to the Ksh458 million recovered in March 2019 related to the larger component of the suspicious trades identified through a total of 14 frozen accounts. All the recovered funds will be paid into the Investor Compensation Fund.
Upon review of the final investigation findings and recommendations, the CMA Board has resolved to initiate enforcement proceedings against one more person by the name Mr. Kunal Bid, a Kestrel Capital Stock Broking Agent for possible insider trading in connection with 4 traders leading to potential illegal capital gains of Ksh23.5 million. At the same time the CMA Board has released funds amounting to Ksh3.8 million belonging to the last trader following a determination that he had not traded using insider information.
“Furthermore, upon review of the written submissions of Mr. Charles Field-Marsham in response to the Notice to Show Cause issued to him and further investigatory findings, the CMA Board has cleared Mr. Charles Field-Marsham of potential liability for insider dealing.” CMA notice reads.
The Authority says it has constituted an Adhoc Board Committee comprising of 4 CMA board members and 4 independent persons for the sole purpose of hearing and determination of the allegations contained in the outstanding Notices to Show Cause on the suspicious trades in KenolKobil shares. The 4 independent members are Hon. Retired Chief Justice Willy Mutunga; Dr. Jim McFie, a respected academic and business leader; Patricia Kiwanuka, President of the CFA Society of East Africa; and Anne Eriksson, former Country and Senior Regional Partner PWC.