PRESS RELEASE
CMA not investigating SBM Bank Kenya or SBM Holdings
Nairobi, 17 February 2022…The Capital Markets Authority (CMA) has stated that it is not investigating neither SBM Holdings Limited, nor its subsidiary SBM Bank Kenya Limited over alleged fraudulent trades related to the sale of a government bond worth Kshs300 million in August 2021.
The CMA Chief Executive Officer, Mr. Wyckliffe Shamiah noted, ‘the Authority has a robust surveillance system that is able to analyze trading patterns to identify and detect market manipulation including front-running, insider trading, wash trades and synchronized trades. The system did not flag any alerts related to the transaction.’
Mr. Shamiah further observed that the Authority’s investor protection initiatives, robust surveillance system coupled with bond market reforms, have restored confidence in the debt capital markets.
ENDS
BACKROUND INFORMATION ON THE CAPITAL MARKETS AUTHORITY
The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. CMA also regulates the commodity markets and online forex trading. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest. For more information, please contact: Antony Mwangi, Manager Corporate Affairs & International Relations on This email address is being protected from spambots. You need JavaScript enabled to view it.
