CMA distances self from SBM probe

In a statement on Thursday, the capital markets regulator said its market surveillance system had not flagged any alerts related to SBM’s sale of Ksh.300 million government bonds in August last year dismissing reports of a probe as rumours.

“The Authority has a robust surveillance system that is able to analyse trading patterns and detect market manipulation including front-running, insider trading, wash trades and synchronized trades,” CMA Chief Executive Officer Wycliffe Shamiah said.

On its part, SBM bank which is yet to issue an official statement on the matter has also dismissed claims of investigations on the August trade.

Earlier media reports had alleged the bank’s involvement in irregular government bonds trading.

The government securities market is a two-phased operation where the Central Bank of Kenya (CBK) handles primary bonds trading while secondary bonds trading is conducted via the Nairobi Securities Exchange (NSE).

SBM Bank is classified as a tier two lender with more than Ksh.80 billion in net assets.

The Mauritian State-backed lender entered the Kenyan market through the purchase of Fidelity Bank in 2017 and later acquired part of Chase Bank rising to the tier two class of commercial banks.