Nairobi: Insider Trading Prosecution of Former Kenya Commercial Bank Executive Begins Thursday

In Nairobi, former Kenya Commercial Bank managing director Terry Davidson is being charged with insider trading in Uchumi Supermarket shares.  His hearing starts on Thursday, according to Business Daily Africa.

BDA reports that Mr. Davidson is facing four counts of insider trading in the supermarket retail chain, and is

accused of instructing Suntra Investment Bank to buy for him 664,899 Uchumi shares worth about Sh9.5 million on December 2, 2005.

He faces a similar charge of allegedly instructing the same stockbroker to sell 300,000 shares worth about Sh5 million on May 9, 2006— days before the retail chain collapsed under substantial debts owned to banks and suppliers.

The state alleges that Mr Davidson traded in the retail chain’s shares based on information that was non-public and contrary to the CMA regulations.

Read the Business Daily Africa article