CMA dismisses SBM Bank's involvement in fraudulent sale of Gov't bond

NAIROBI, Kenya, Feb 17 -The Capital Markets Authority has dismissed claims that SBM Bank Kenya Limited was involved in the fraudulent sale of a government bond worth Shs 300 million noting that it will consequently not investigate the financial institution.

In a statement, CMA chief Executive Wycklliffe Shamiah noted that the authority did not flag any alert signaling market manipulation including insider trading, wash trades, and synchronized trades.

‘The Authority has a robust surveillance system that is able to analyze trading patterns to identify and detect market and  market manipulation including insider trading, wash trades, and synchronized trades,” the authority said.

He expressed certainty that  CMA’s investor protection initiatives, robust surveillance system coupled with bond market reforms, have restored confidence in the debt capital markets.