Kenya’s Central Bank Requests Investigation into National Social Security Fund’s Trading Activities
The Central Bank of Kenya (CBK) has asked the Capital Markets Authority (CMA) to investigate irregular trading activities involving the National Social Security Fund (NSSF) Kenya. The trades in question took place between May and July 2024, and involved the NSSF’s CSD accounts and two parties identified as Humphrey Wachira Gichuru and Pergamon Investment Bank.
According to a letter issued by CBK’s Director for Financial Markets, David Luusa, the analysis of the trades shows that the NSSF was involved in transactions where bonds were bought at prices significantly above the market average and sold at lower prices. Furthermore, the NSSF engaged in transactions where bonds were sold at lower prices only to be repurchased at higher rates shortly after.
The purpose of the letter is to request the CMA to review the conduct of the above-mentioned parties and share the actions taken with the Central Bank of Kenya. This move is aimed at ensuring transparency and fairness in the country’s financial markets.
The investigation is expected to shed light on the irregular trading activities and determine whether any laws or regulations were breached. The outcome of the investigation may also have implications for the NSSF and the individuals involved.
The Central Bank of Kenya’s request for an investigation is a significant development in the country’s financial sector, and it is expected to be closely monitored by investors and stakeholders.