How James Ndegwa Has Been Cartelling Money Markets Through CMA

Early this month, Kahawa Tungu revealed how James Ndegwa, the Capital Markets Authority (CMA) chairman, has been stiffing competition at the money markets.

Our investigative desk dug deeper to understand his interests in the money market funds, his stake and how he benefits.

Ndegwa is the chairman of First Chartered Securities (FCS), a company that was started by his father in 1974.

FCS owns ICEA Lion, which owns ICEA Lion Asset Managers, which manages the ICEA Money Market Fund, all regulated by CMA.

Read: CMA Chairman James Ndegwa Accused of Conflict of Interest in Market Regulation

ICEA Lion recently acquired Stanlib, hence Stanlib Money Market fund is also under ICEA lion. Stanlib Money Market fund is regulated by CMA.

FCS owns owns 12 percent in NCBA, which is listed in the Nairobi Securities Exchange; hence NCBA is also regulated by CMA.

NCBA also runs NCBA Money Market Fund, which is also regulated by CMA.

James Ndegwa is the chairman of CMA, despite the fact that NCBA bank, NCBA Money Market Fund, ICEA Money Market Fund, Stanlib Money Market Fund are all regulated by CMA, where he is the chairman.

Read: James Maina Ndegwa: The Silent Cartel Calling The Shots In Several Gov’t Agencies?

As revealed in our last story, CMA is very friendly to banks and has ensured that banks are the only ones who can be trustees to oversee fund investments and is very unfriendly to competing non bank players and investments outside of banks.

CMA works with trustees to ensure money market funds are only invested in banks, that is how investors in Genghis Money Market Fund lost their monies in Chase Bank. In a recent meeting of trustees, cma threatened any trustees who will allow investments outside of banks.

Rumor has it that Omtata is preparing a petition to oust Ndegwa from the helm.

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