Connect with us

Hi, what are you looking for?


Another Kenyan broker in the red

NAIROBI, Kenya, Feb 5 – Ngenye Kariuki and Company stockbroker has been placed under statutory management for a period of six months.

The Chief Executive of the Capital Markets Authority (CMA) Stella Kilonzo said the broker has for sometime now failed to comply with the legal and regulatory provisions as outlined in the Capital Markets Authority Act necessitating the action.

“While efforts have been made to restructure the company, these have not borne significant fruit and as a result, no significant progress has been made. The Board of the Capital Markets Authority has resolved to place Ngenye Kariuki and Company Limited under statutory management,” a statement from the regulator said.

Mrs Kilonzo said the measure had been taken to safeguard investors’ interests as well as give the brokerage firm which has been facing liquidity problems ample time to put its house in order. The firm was operating under an ‘extended license’ after the regulator gave it time to comply with its licensing regulations.

“This statutory management action has been taken to ensure an orderly approach to addressing the challenges facing the company and to give the company a chance to revive its business,” she said.

In addition, the action will provide Wycliffe Shamiah who has been appointed the Statutory Manager with the opportunity to trace and preserve any assets of the company that may be applied to compensate investors with proven losses. Mr Shamiah will be expected to assume the management, control, and conduct of the affairs and business of the firm.

“Shamiah will be communicating detailed guidance to the investors, customers and creditors of Ngenye Kariuki on the procedures to be adopted for making claims in addition to the mechanisms to facilitate the transfer of CDS accounts of those investors who desire to effect trades in the near future,” Mrs Kilonzo advised. 

All parties concerned have been requested to give the Statutory Manager up to March 1 to enable him to familiarise himself with all aspects of the company prior to forwarding any claims or lodging any requests for transfer of CDS Accounts.

Ngenye Kariuki now joins Nyaga Stockbrokers and Discount Securities whose management was placed under the Capital Markets Authority.

Advertisement. Scroll to continue reading.

Should it fail to meet its contractual obligations, clients who have invested in the Nairobi Stock Exchange through the firm will be compensated from the Investor Compensation Fund.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...