The truth of the matter is that the MD, Directors and senior staff borrowed from the bank and bought shares BEFORE the IPO. It is a against the law to lend money for purchase of your own shares.

1.The fact is they bought shares before the IPO, before the share split and at different price than the IPO price. The fact that they did this knowing that the bank would be doing an IPO is what is called insider trading.

2. The rest of the staff bought during the IPO. This what you would call ESOP.

If you are a member of a co-op that is a shareholder of the bank, just know that you are the one who was played games otherwise who owns coops? It is you and me.

Ask yourself how came the rest of the staff did not make hundreds of millions yet they were also made to borrow and buy the shares.
The trick was with the share split. Anyone who had one share, was given 100.

This is how it was done

1. Before the IPO allocate each of yourself lots of shares. MD gets say 680,000 shares. OTC price was between shs60 and 80. So he borrows says 50m from the bank and buys the shares. Pls note that the share were acquired before the IPO. They never bought them during the IPO.

2. Carry a share split of 1:100. So he ends up with 68,000,000 shares.

3. AT the IPO with a price of 9.50. The man is already worth 646,000,000.00. At the current price of 18 the man is worth 1.2b.

4. The rest of the staff are made to buy the shares at IPO. So say a staff buys same number of shares as the MD. 680,000 shares. IPO price 9.50. Therefore 680,000*9.50=6.4m. At the current price, the follow is worth 680,000*18=12.2m. I hope the clever guys here can see the connection between the 12.2m and the 1.2b. IT IS THE SHARE SPLIT BEFORE THE IPO.


The same game was played at CIC. Just check their financials and see how many shares the Co-op MD and CIC MD. That is why Co-op Bank has heavily invested in CIC more than other co-ops because of this monkey business.

As for the coffee written-off thing, the evidence is there. IT will come out one day.

The thing about the media not covering the story out of compromise; The former MDs PA knows how he was able to achieve this all along.

And in a clearly choreographed move; Ruto's wife is give 5 million by the bank the other day for her foundation. Basically continue buying protection. And nothing will happen to you. Let people make noise.

@Bachuma Gate ..... I am not defending anyone but please explain to me whats illegal about an MD taking a loan of say 50M to buy shares of the company before IPO?
I also bought CIC shares before listing & on listing at the NSE I made about 5 times what I had borrowed.

He is only allowed to borrow from another organization. Not from company that is raising the capital. CBK banking Regulations.

He is only allowed to borrow from another organization. Not from company that is raising the capital. CBK banking Regulations.

The issue about insider info is that they had prior knowledge. Clearly even the decision to split of 1:100 was done by them knowing how it favour them.