Grobbelaar & 2 others v Capital Markets Authority (Appeal 5 of 2021) [2025] KECMT 5 (KLR) (11 July 2025) (Judgment)
- Court
- KECMT
- Case number
- 5
- Citation
- [2025] KECMT 5 (KLR)
- Decided
- 11 July 2025
AI Summary
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Machine-generated — may contain errors. Not legal advice.
TypeAppealPostureAppeal from a decision of the Capital Markets AuthorityCoramP. LILAN, P. WANGA, C. GIKONYO, J. EBOKO
Holding
We find and hold that the composition of the ad hoc committee was not faulted, and there is no evidence of bias on account of the presence of 3 non-independent members on the said Committee.
Facts
The Respondent, Capital Markets Authority (CMA), approved the issuance of a Kenya Shillings Five Billion (KES 5,000,000,000) Subordinated Multi-currency Medium Term Note (MTN) by RPKL. RPKL raised KES 2,635,200,000 from investors, but was unable to meet its MTN obligations, leading to financial distress and an inquiry by CMA.
Issues
- Whether the ad hoc committee of the Respondent and its proceedings met the requirements of natural justice
- Whether there was a misapplication of the proceeds of the MTN
Reasoning
The Tribunal found that the ad hoc committee's composition did not violate natural justice principles, as it was not perceived to be biased and there was no evidence of actual bias.
Outcome
Affirmed
Authorities cited
Cases cited (2)
- Alnashir Popat & Others v Capital Markets Authority [2020] eKLR
- CMT Appeal No 3 of 2021, Dr. Norman Ambunya & 4 others. Vs Capital Markets Authority
Experimental AI summary generated by a language model, not a lawyer. It may contain errors or omissions and must not be relied on for legal decisions — the full judgment below is the authoritative source.
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