On December 19th 2011, the Capital Markets Authority (CMA) resolved to revoke the statutory management of Ngenye Kariuki & Company Limited. Mrs. Stella Kilonzo, the Chief Executive Officer of the CMA, said the revocation of the statutory management was positive and that it was geared at facilitating completion of restructuring of the company.
Ngenye Kariuki & Company has been under statutory management under a statutory manager, Mr. Ronald Ng’eno, an employee of the CMA, since February 2010 and the company has managed to pay off a majority of investors. The statutory manager has negotiated with majority creditors to restructure the company’s debts and shareholders of the company have injected additional capital into the business to improve its liquidity position and meet the financial requirements for operating as a stockbroker in Kenya.
Speaking to the Business Daily, Ngenye Kariuki, the Chief Executive and majority shareholder of the brokerage firm said that the firm was actually recruiting staff to take over from the statutory managers who are about to exit the company.
Ngenye Kariuki & Company was suspended from trading following non-compliance of various CMA regulations after it ran into financial difficulties going as far as to operate with negative capital balances and overdraw from clients’ bank accounts. In a show of confidence in the revitalised firm, Mr. Kariuki said “We are re-launching and should be coming back in the market by May.”