Today's Headlines
- Lessons and Implications of the Confirmation of Charges Against Kenya's 'Ocampo Four'
- Finance Minister Quits Over ICC Charges
- Shortage of HIV Test Kits Raises Concerns
- Living On the Edge in Turkana Region
- Ali Breaks Silence, Describes Delight At Acquittal
- Uhuru, Ruto Eligible for Presidency - CIC
- Tea Sector Posts Record Earnings in 2011
- Resettle IDPs, Urges Annan
- Uhuru, Muthaura Have Done the Right Thing
- All Displaced People Should Return Home
- Concern Raised As Parents Shun Schools in Poll Violence Hotspots
- Ruling On IEBC Hiring in February
- Country Working Towards Conditions Needed for Direct Flights to U.S.
- How ICC Claimed Kibaki's Lieutenants
- Geothermal Project to Receive Sh10 Billion Funding Boost
- Five Million to Get IDs Before Elections
- Speed Up Building Port
- Uhuru and Muthaura Did Well to Quit Posts
- A Full Plate Awaits Githae
- Clashes Continue in Moyale
- Baraza Case to Be Heard Monday
- Two Firms in Joint Venture to Drill for Oil Near Lodwar
- Exit Uhuru, Muthaura
- ICC Charges Hound Uhuru Out of Treasury
- Consumers Grow Despite Inflation
- Poor Relations Between Banks Blamed for Cash Shortages
- Fish Prices Up As Vegetable Supply Dwindles
- Consumers to Pay More for Milk and Bread As Prices Rise
- Kibaki Tasks Ex-Dar CJ to Lead Probe in Kenya
- Mombasa Port Cargo Congestion Forces Three-Month Fees Waiver
1 September 2010
Nairobi — The Capital Markets Authority has been summoned to court to explain how an investor lost millions of shillings through unauthorised trading of his shares.
Chief executive officer Stella Kilonzo is required to give evidence on behalf of Mr Abdalla Salim, who has sued CFC Financial Services over the loss of his money.
Mr Salim claims he bought 58,840 KenGen shares at Sh11,90 each for Sh640,696 and instructed CFC to sell them at Sh35 each.
However, he says, the stockbroker instead bought more than100,000 shares without his authority at Sh37 per share, generating Sh3.7 million.
In addition, CFC also bought shares in a number of other entities and traded them without his approval, resulting in a huge deficit in his account.
He reported the matter to the Kenya Anti-Corruption Commission and was advised to direct the complaint to the CMA.
Mr Salim said he lost over Sh1 million but accuses the CMA of exonerating the broker.
In February 2008, CFC was found guilty of illegally trading in stocks without investors' authority and, in a landmark ruling, the High Court ordered the broker to reverse the sale of a client's shares.
Juja Road Fancy Stores had sued CFC for the loss of more than Sh2 million after buying shares without authority.
