This archive report was first published on 4 December 2019.
On November 12, 2019, Abraaj Kenya Advisers Limited, a subsidiary of The Abraaj Group, notified the Capital Markets Authority (CMA) of its intention to fold operations in Kenya. The CMA accepted the request, and a notice was published detailing the revocation of the firm's license.
According to the notice, members of the public were given 45 days to raise any outstanding issues with the company and notify the CMA. Upon expiration of the deadline, the licenses would be revoked, as per the Capital Markets Act.
Abraaj Group had significant investments in various Kenyan companies, including Java, Avenue Hospital, Nairobi Women's Hospital, UAP Group, ARM, and Brookside Dairy. The firm had offloaded its stakes in most of these companies, including a 13.6% stake in UAP to Old Mutual for KSh 5.6 billion.
The private equity firm faced intense scrutiny in July 2019, when the Dubai Financial Services Authority imposed a fine of US$315 million for deceiving investors and misusing funds. This penalty followed the indictment of Arif Naqvi and other senior executives by US prosecutors on charges of defrauding investors in June 2019.
