This archive report was first published on 8 July 2019.
On October 1, 2018, KenolKobil announced a takeover by Rubis Energie, but before the news was made public, former Kestrel Capital East Africa CEO Andre Desimone allegedly disclosed price-sensitive information to two stockbroking agents.
According to the Capital Markets Authority (CMA), Desimone has been ordered to pay a penalty of Sh2.5 million for his involvement in the insider trading.
Desimone has also been disqualified from holding office as a key officer of a public listed company or in any other capacity in an approved institution of CMA.
Additionally, CMA has disgorged Sh4.69 million from stockbroker Aly Khan Satchu and Sh23.41 million from Kunal Bid for their roles in the insider trading.
Both Satchu and Bid have been disqualified from holding office as a key officer of a public listed company or in any other capacity in an approved institution of CMA for a period of three years.
As part of the settlement, Kestrel Capital East Africa has also disgorged Sh9.86 million in commissions earned from the transactions.
These penalties come after CMA recovered Sh477 million from the investigation in May 2019, which was put into the Investors Compensation Fund.
