CMA sanctions former Chase Bank executives over misleading 2015 bond disclosures

The Capital Markets Authority (CMA) has taken action against former senior officials of Chase Bank Kenya, now in liquidation, over misleading information issued during the lender’s 2015 bond sale.

CMA sanctioned former Chase Bank Chairperson Zafrullah Khan, former General Manager for Finance Makarios Agumbi, and former General Manager for Corporate Assets James Mwaura, following its inquiry into the bank’s 2015 medium-term note.

The regulator says the trio played key roles in preparing false financial statements and later irregularly handled the funds raised from investors.

It found that all three played key roles in preparing and approving false financial statements used in the information memorandum for the Ksh.10 billion bond.

Khan, the chairperson, now faces a Ksh.5 million fine and a 10-year ban from holding leadership roles in the capital markets, for failing to provide proper board oversight and for approving his own bonus without declaring a conflict of interest.

Agumbi, the finance manager, has been slapped with a Ksh.3.5 million fine and a five-year ban after facilitating the misleading financial disclosures and irregularly paying Khan’s bonus in a lump sum, contrary to board instructions.

Mwaura, formerly in charge of corporate assets, has received a Ksh.2.5 million fine and a two-year ban for misclassifying related-party loans and facilitating the irregular bonus payment to Khan.

All three must undergo corporate governance training before they can serve again in the capital markets.

Chase Bank raised Ksh.4.8 billion in the first tranche of the bond in 2015, but the bank collapsed less than a year later, triggering the CMA investigation.

The regulator’s hearings, concluded in November 2025, confirmed multiple breaches, resulting in the latest sanctions.