𝐏𝐈𝐂 𝐎𝐍 𝐂𝐎𝐌𝐌𝐄𝐑𝐂𝐈𝐀𝐋 𝐀𝐅𝐅𝐀𝐈𝐑𝐒 𝐀𝐍𝐃 𝐄𝐍𝐄𝐑𝐆𝐘 𝐂𝐀𝐔𝐓𝐈𝐎𝐍𝐒 𝐂𝐌𝐀 𝐎𝐕𝐄𝐑 𝐋𝐎𝐎𝐏𝐇𝐎𝐋𝐄𝐒 𝐎𝐍 𝐈𝐍𝐕𝐄𝐒𝐓𝐎𝐑 𝐏𝐑𝐎𝐓𝐄𝐂𝐓𝐈𝐎𝐍 𝐈𝐍 𝐐𝐔𝐈𝐂𝐊𝐌𝐀𝐑𝐓 𝐒𝐇𝐀𝐑𝐄 𝐎𝐅𝐅𝐄𝐑 𝐀𝐍𝐃 𝐒𝐈𝐌𝐈𝐋𝐀𝐑 𝐔𝐍𝐃𝐄𝐑𝐓𝐀𝐊𝐈𝐍𝐆𝐒

The National Assembly Public Investments Committee (PIC) on Commercial Affairs and Energy has challenged the Capital Markets Authority (CMA) to strengthen its market regulation framework to enhance protection of Kenyans from suspect investment offers.

The Committee chaired by Pokot South MP Hon. David Pkosing issued this directive, citing recent concerns from different quarters over transparency and scope of public education on the Quickmart Supermarket Chain shares offer.

The CMA leadership led by the Chief Executive Officer FCPA, Wyckliffe Shamiah had appeared before the committee for review of the agency’s audited financial statements between Financial Year 2018/2019 to 2024/2025 when the matter arose.

Committee Members noted that it was important for CMA to put in place measures to safeguard Kenyans from potential loss of investments, citing recent similar share offers from such supermarket chains as Uchumi and Nakumatt which have since gone under.

Nairobi County MP Hon. Esther Passaris ignited the said debate as she questioned the implications of the Quickmart Supermarket chain’s Ksh.15 billion public share offer, particularly whether ordinary Kenyans had been adequately protected and sufficiently informed about the financial realities underpinning the transaction.

The offer, has already attracted applications worth KSh18.41 billion, representing a 22.7% oversubscription. It involves the sale of two billion existing shares by shareholder Sokoni Retail Kenya Limited at KSh7.50 each.

Hon. Passaris indicated that there were concerns that the proceeds would go to the selling shareholder rather than Quickmart itself, meaning the retailer would not receive fresh capital from the transaction.

The transaction has also een described as a partial exit by private equity investor Adenia and the company's founders, raising questions about what investors stand to gain and the risks they assume.

Hon. Pkosing stressed that there was need for CMA to take a keener scrutiny of the said matter, as Kenyans have previously lost huge sums of money after similar share offers relating to Supermarket chains.

“As the market regulator you have an obligation to protect Kenyans from potential loss of funds. You have the capacity to seal all these loopholes, and your biggest risk that needs your immediate attention appears to be these supermarket chains shares offers,” noted Hon. Pkosing.

The committee's concerns centred on whether CMA had adequately scrutinised Quickmart's financial position, operating cash flows, supplier obligations and the disclosures made to prospective investors.

FCPA Shamiah told the Committee that CMA had undertaken thorough review of the Quickmart shares offer, and was convinced of its feasibility.

“The SME (Quickmart) is not heavily reliant on debt, as the bulk of its funding is internally generated. The proposed share sale has also met the other requisite thresholds,” noted FCPA Shamiah.

During the meeting, the Committee also probed key audit concerns raised in the agency’s audited financial statements between FY 2018/2019 and 2024/2025.

Among these was irregular engagement of temporary staff during FY 2023/2024, and irregular procurement of insurance brokerage services for medical cover during FY 2024/2025.

Regarding the alleged irregular engagement of temporary staff, FCPA Shamiah told the Committee that CMA had resulted to engaging temporary staff due to a staffing shortfall, and had since recruited personnel to substantively fill the affected positions with the approval of the National Treasury.

The CMA management also defended its procurement of insurance brokerage services for medical cover indicating it had complied fully with the relevant legal provisions.