Tribunal orders Amana to Pay Sh21.4mn to investor in Nakumatt-linked loss case
NAIROBI, Kenya, April 11 – The Capital Markets Tribunal has directed Amana Capital Limited to pay a total of Sh21.4 million to Susan Mukuhi Kagiri, a disgruntled investor whose funds were frozen following the collapse of Nakumatt Holdings.
In a unanimous judgment, the Tribunal dismissed Amana’s appeal and upheld a decision by the Capital Markets Authority (CMA), ruling that the fund manager violated investment agreements and must pay Kagiri her outstanding dues with interest.
Kagiri had invested Sh26.5 million in 2016 through the Amana Unit Trust Fund. However, in 2018, the fund froze 29 percent of assets linked to Nakumatt’s failed commercial paper, and later in 2020, restructured the remaining funds through an equity conversion plan—moves Amana said were supported by majority resolutions of unit holders.
The Tribunal, however, found that Kagiri was not given notice of the 2018 Extraordinary General Meeting that resolved to freeze part of her funds and thus could not be bound by its resolutions.
“She was not properly served with notice and cannot be deemed to have participated in the decisions,” the Tribunal ruled.
Although Kagiri attended later meetings in 2020 and voted to convert part of her remaining investment into equity, the Tribunal held that by then, she had already made 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 read.
Amana had paid her only Sh11.9 million out of the agreed Sh25.7 million as of 2021. The Tribunal ordered Amana to pay the remaining Sh13.75 million, plus the frozen KES 7.7 million, with 12 percent interest from the date of filing the case.
The Tribunal also awarded costs to Kagiri and the CMA.
