The court noted that the decision was tainted by bias.
Justice John Mativo ruled that CMA, which imposed various penalties against Mr Okumu, acted as the investigator, prosecutor, judge and executor hence violated the principle of natural justice.
The High Court has quashed Capital Markets Authority sanctions imposed against ex-Uchumi chief financial officer Chadwick Okumu two years ago over fraudulent allegations.
The court noted that the decision was tainted by bias.
Justice John Mativo ruled that CMA, which imposed various penalties against Mr Okumu, acted as the investigator, prosecutor, judge and executor hence violated the principle of natural justice.
The CMA had hit former directors and managers including Mr Okumu with penalties totalling Sh21.7 million for their roles in conning investors through a flawed rights issue held in 2014.
The officials were also banned from holding office in any publicly listed company.
They, however, moved to court in a bid to stop the penalties imposed on them while claiming that the regulator had punished them for decisions taken collectively at Uchumi’s board meetings.
The court has already freed former chief executive Jonathan Ciano from fraud charges, with Justice George Odunga ruling that the failure by the CMA to provide himwith sufficient material to defend himself adequately was wrong.
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