This archive report was first published on 26 July 2019.
On February 1, 2019, stockbroker Aly-Khan Satchu filed a challenge to the Capital Markets Authority's (CMA) alleged intrusion of his privacy. The case stemmed from a search warrant issued to the CMA on January 14, 2019, allowing them to enter Satchu's office at the Mirage Office in Westlands.
The CMA had been investigating Satchu, former Kresrel Capital CEO Andre Desimone, and former KenolKobil CEO David Ohona for alleged insider trading of KenolKobil shares in the run-up to the public announcement of the acquisition by French-based Rubis Energie on October 24, 2018.
According to the court, the CMA had acted lawfully in obtaining the search warrant, citing provisions that empower the CMA to investigate violators of capital markets regulations. The court dismissed Satchu's application, stating that he had not met the threshold for review.
Senior Resident Magistrate P. Muholi ruled that the application was 'lacking in merit and is dismissed with costs.' The CMA had opposed Satchu's filing, citing compliance with the Capital Markets Act.
On July 8, 2019, the CMA imposed sanctions on Satchu and Kunal Bid, a stockbroker linked to Kresrel Capital, totaling Ksh. 28.1 million in undue gains. Desimone was fined Ksh. 2.5 million for trading on non-public information.
