The appointments to the Capital Markets Tribunal have paved the way for the resolution of long-standing issues in Kenya’s capital markets including the stalled acquisition of BOC Gas Kenya by Carbacid.
Other pending issues at the tribunal include the Capital Markets Authority’s (CMA) enforcement action against Imperial Bank directors over the Sh2 billion bond floated before the lender plunged into receivership in October 2015.
Treasury Cabinet Secretary Njuguna Ndung’u appointed to the tribunal Paul Lilan as chair and Constance Gikonyo, Godwin Wangong’u and Paul Wanga as members for three years effective May 26, 2023.
The CS also appointed Josephine Eboko and Faith Chirchir as members effective June 9, 2023, for three years.
This brings the appointments to the tribunal to six which is the total number of persons as required by Section 35A (1) of the Capital Markets Act.
On March 17, 2022, Carbacid said disclosures that it was still interested in the take-over bid seeking to have the firm acquire 100 percent ordinary shares of BOC Gas Kenya although the transaction had been suspended.
Part of the headwinds the take-over ran into was a filing at the tribunal by BOC Gas Kenya shareholder, Ngugi Kiuna, who opposed the transaction on account of an independent valuation which argued the transaction was undervaluing the firm.
“Carbacid Investments PLC is still interested in the purchase of BOC Gas Kenya. However, the process has been delayed by objections filed at the Capital Markets Tribunal and in the High Court by two of BOC’s shareholders. As a result, the offer is suspended by CMA pending determination by both the tribunal and the High Court,” said Carbacid in its March 17 disclosure.
The case involving eight directors of Imperial Bank has been before the Capital Markets Tribunal since the start of 2021.
The Supreme Court having granted the market regulator the green light to investigate the conduct of the bank’s directors in the run-up to the collapse of the lender.
The new tribunal now faces the resolution of this matter as part of its in-tray.
Section 35A (1) of the Capital Markets Authority Act provides that the Capital Markets Tribunal will be constituted of six members the Chairman; one lawyer having at least seven years experience in the commercial and corporate sector; one accountant who has been in practice for not less than seven years; two persons who have demonstrated competence in the field of securities; and the Tribunal’s secretary who should be an advocate with at least five years’ experience in commercial law.
