This archive report was first published on 25 June 2021.
Investors in Kenya are crying foul over unfulfilled promises from Cytonn High Yield Solutions, a fund marketed by Cytonn Investments Limited as a private placement, but which court filings revealed had raised money from 3,000 investors in breach of regulations.
Garissa Township MP Aden Duale has asked the Finance and National Planning Committee to probe the CMA, citing instances of the regulator's failure to regulate the capital markets effectively, including the 2005 Imperial Bank corporate bond valued at KES 2.0 billion, the 2005 clearing of Chase Bank to issue KES 4.8 billion worth of bonds, and the 2018 Nakumatt Holdings Supermarkets KES 4 billion commercial paper issuance.
Over time, investor confidence has been eroded on Kenya's capital markets, with most investors sharing the sentiments that the CMA has done little in terms of protecting the retail investors.
Published on June 25, 2021, the CMA has taken regulatory action against some of the capital markets illegalities, including the recent insider trading case involving Kenol Kobil.
MP Duale wants the CMA to disclose the total number of unregulated capital market products in the country, including the number of invested persons and the role of the regulator in the proliferation of illegal investment funds.
