NAIROBI, Kenya, Dec 28 – As part of its mandate of protecting the investing public, the Capital Markets Authority (CMA) has cautioned members of the public against participating in the share offer from Muramati Sacco Society Limited (Muramati Sacco) since it has not been approved.
The CMA Chief Executive, Stella Kilonzo, said in a statement issued on Tuesday that the authority has not approved the share offer and it is therefore in contravention of the provisions of the Capital Markets Act.
Mrs Kilonzo said: "According to section 30 of the Act no person shall, in Kenya, offer its securities for subscription or sale to the public or a section of the public unless prior to such offer, it publishes an information memorandum signed by or on behalf of its officers and files a copy thereof with the Authority. Every information memorandum must comply with such requirements as may be prescribed by the Authority and the offer should be made in accordance with the requirements set out in the Capital Markets (Securities) (Public Offers, Listing and Disclosure) Regulations."
The CMA Chief Executive instructed Muramati Sacco to stop advertising and selling shares to the public until it fulfills the requirements of the law on offers of securities to the public.
Mrs Kilonzo urged the investing public to get in touch with CMA when any share offers are made to them to confirm if they have received the requisite approvals before making investment decisions.
She observed: "I would like to advise Kenyans to check with us if in doubt about any share offers. I would like to assure the investing public that CMA will not hesitate to take action against anybody offering share for sale to the public without approval, in line with our mandate of protecting the investing public."