CARMEL RICKARD: Playing judge, jury and executioner
If Kenya’s Capital Markets Authority is to serve its purpose, it must be bound by the rules of procedure and impartiality
In the event that the statutory authority intended to protect a country’s capital market, including its stock exchange, is found to have acted "in total violation of the principles of natural justice" it must mean, at the very least, that the judgment concerned is worth reading. Indeed, it was. This is a case brought against the Capital Markets Authority (CMA) of Kenya by the former CFO of a major supermarket chain, Uchumi. A long-established business, with a wide range of offerings, Uchumi is in deep financial trouble, at least in part because of pressure from new stores from SA and elsewhere. The CMA has for some time been investigating Uchumi for several matters, including a rights issue of 895m Kenyan shillings a few years ago. While the funds were raised to finance the opening of new stores and refurbish existing ones, at least half went towards settling current debts. After being fired by Uchumi in 2015, former CFO Chadwick Okumu began a new job at a Kenyan brewery. But follow...
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