By Eric Ombok

Feb. 5 (Bloomberg) -- Ngenye Kariuki & Co., a Kenyan brokerage, was placed under statutory management for six months for not complying with market rules, the capital regulator said.

“Ngenye Kariuki has been found not to be in compliance with the legal and regulatory provisions as outlined in the Capital Markets Authority Act for some time,” Stella Kilonzo, chief executive officer of the regulator, said in an e-mailed statement today. The statement didn’t specify Ngenye’s infringement.

In February last year, the authority introduced new rules that included a provision that prevents any individual from owning more than 25 percent of a brokerage. It also tightened up rules to prevent brokers from buying or selling clients’ stocks without their permission.

Ngenye Kariuki becomes the fifth of the East African nation’s 19 brokerages to be placed under the statutory management of the regulator over the past three years.

Calls to the brokerage seeking comment were not answered.

http://www.bloomberg.com...116&sid=aV2x9ND3TjyI

this is a nice place to fnd out of sinking and rising ships..

Now im just wondering if there are retail investors(wanjikus) who had moved from Thuo to Discount and then to Ngenye..they should tell us where next they are planning to move to as their brokerage..Tuepuke!

that one is like the Titanic.......

It is sorry state of affairs but it was coming after the fall of Nyaga and Discount they were next on line.Now who is next?

In March 2008 six stockbrockers were warned that their licences would not be renewed for failure to comply to basic requirements by the regulator. Rather than mention names better look back to history to see the guys who were in red then although their licences were eventually renewed. http://allafrica.com/stories/200804280130.html of course that was two years ago. Before then Francis Thuo & Nyaga had collapsed with the seat of the former already bought when the bullish run was on cruising mode. We know what happened to Discount securities, today its Ngenye Kariuki who was also on the list. Six minus two equals four. Two others were taken over because of liquidity problems but there are two others where nothing has changed so beware.

I guess i better stick with my CFC Stanbic,inspite of their inefficiencies!

Well... run baby run...

It's like the banks... I prefer the multinationals for 'safety' but like strong mid-tier for services...

I avoid the likes of City Finance, etc... too small... too scary!

@wasee - Diversify among brokers?
Better to find a solid broker!

@selah - All banks & brokers had set up 'alliances' during safaricom...

So it all dependent on the bank you went to...

I have always preferred banks as far as brokerage is concerned. At least they have a huge capital base and they are used to more rigorous scrutiny.