The Lower Eastern Times Opening The Third Eye
Related Articles
The Capital Markets Tribunal has instructed Amana Capital Limited to pay a total of Sh21.4 million to Susan Mukuhi Kagiri, an investor whose funds were frozen after Nakumatt Holdings collapsed.
In a unanimous ruling, the Tribunal rejected Amana’s appeal and upheld the Capital Markets Authority (CMA) decision, determining that the fund manager breached investment agreements and must compensate Kagiri with both the outstanding amount and interest.
Kagiri had invested Sh26.5 million in 2016 via the Amana Unit Trust Fund. However, in 2018, the fund froze 29 percent of assets connected to Nakumatt’s failed commercial paper. Later, in 2020, the remaining funds were restructured through an equity conversion plan—actions Amana claimed were backed by resolutions from the majority of unit holders.
The Tribunal, however, found that Kagiri had not been properly notified about the 2018 Extraordinary General Meeting that decided to freeze part of her investment, meaning she could not be bound by the meeting’s decisions.
“She was not properly served with notice and cannot be deemed to have participated in the decisions,” the Tribunal stated.
Although Kagiri attended subsequent meetings in 2020 and voted to convert part of her remaining investment into equity, the Tribunal ruled that by then, she had already submitted a full withdrawal request and was no longer an active investor.
“It was clear that she was a creditor awaiting payment under a redemption plan, not a member consenting to risk-based restructuring,” the judgment explained.
By 2021, Amana had paid her only Sh11.9 million out of the agreed Sh25.7 million. The Tribunal ordered Amana to pay the outstanding Sh13.75 million, along with the frozen Sh7.7 million, plus 12 percent interest from the date the case was filed.
