Amana Capital Ltd & another v Capital Markets Authority; Kagiri & another (Interested Parties) (Tribunal Appeal 1 of 2022 & Appeal 3 of 2022 (Consolidated)) [2025] KECMT 1 (KLR) (27 March 2025) (Judgment)
- Court
- KECMT
- Case number
- 1
- Citation
- [2025] KECMT 1 (KLR)
- Decided
- 27 March 2025
The Tribunal finds that the appeal No. 1 of 2022 is without merit while Appeal No. 3 of 2022 has merit.
Facts
The Interested Party Susan Mukuhi Kagiri invested in the Amana Unit Trust Fund and later requested to withdraw her investment. The Appellant, Amana Capital Limited, advised her to switch to the Nakumatt Commercial Paper Program through the Amana Shilling Fund. The Interested Party applied to withdraw her entire investment in August 2019, but the Appellant acknowledged a balance of KES 25,748,303.28.
Issues
- Whether the resolutions passed at the 23 November 2018 EGM are binding on the Interested Party
- Whether the Interested Party remained a member of the Amana Shilling Fund after submitting her redemption request in August 2019
- Whether the 25 September 2020 AGM resolutions are binding on the Interested Party
- Whether the Interested Party is entitled to the entire amount claimed (KES 13,753,303) in addition to the 29% portion (KES 7,708,257.08) or only the latter
- Awarding of interest in the matter
Reasoning
The Tribunal dismissed the appeal No. 1 of 2022 and upheld the CMA’s enforcement directive requiring payment of the 29% impairment (KES 7,708,257.08). The Appellant was ordered to pay the remaining balance of KES 13,753,303 with interest and bear the costs of both the Interested Party and the Respondent.
Outcome
Appeal No. 1 of 2022 is dismissed, Appeal No. 3 of 2022 has merit.
Orders
- The appeal No. 1 of 2022 is hereby dismissed in its entirety.
- The CMA’s enforcement directive dated 7 February 2022, requiring payment of the 29% impairment (KES 7,708,257.08), is upheld.
- The Appellant pay the Interested Party the remaining balance of KES 13,753,303 with interest at the rate of 12 % from the date of ling the appeal until payment in full.
- The Appellant shall bear the costs of both the Interested Party and the Respondent.
Remedies
- Payment of the remaining balance of KES 13,753,303 with interest at the rate of 12% from the date of filing the appeal until payment in full.
- Bearing the costs of both the Interested Party and the Respondent.
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