Genghis Capital not under statutory management – CMA

An investment bank linked to the Moi family is not under statutory management, the capital markets regulator has said.

In a statement, the Capital Markets Authority (CMA) said it has asked the firm to expedite resolution of unmet contractual obligations to a third party.

“CMA clarifies that Genghis Capital Limited is not under statutory management but directs the firm to conclude discussions on the unmet contractual obligations,’’ the regulator said in a media statement.

This is after fake posts surfaced on social media on Tuesday, claiming that the firm had been placed under statutory management for failing to honour debt owed to South African businessman, Auswell Mashaba.

The regulator said that operations of the Genghis Unit Trust Scheme are regulated under the Capital Markets (Collective Investment Schemes) Regulations 2023, which require that client assets are held by a custodian in segregated accounts from those of the firm.

The dispute stems from a $2,265,000 (Sh293.08 million) loan that Mashaba gave to Genghis on January 25, 2017, with a 7.25 percent interest rate.

This is the second time the regulator is coming to the aid of the investment bank after the businessman instructed Moran Auctioneers to seize and sell office items to recover his debt late January.

The auctioneers were following a High Court ruling of January 14 that issued a 15-day notice to auctioneers to sell the investment firm’s properties to recover the debt that has since accumulated to Sh354.55 million.

CMA asked Genghis Capital to create a roadmap on how the firm intends to address the outstanding debt owed to its stakeholders.

CMA also clarified that client assets managed under the Genghis Money Market Fund and Mali Money Market Fund are secure, as they are held by a duly authorised custodian and overseen by an independent trustee.

The firm is also facing a possible auction over Sh355 million arising from Safaricom’s Mali Market Fund.