Caroline Rwenji
27 August 2008
Nairobi — Former chief executive of Kenya Commercial Bank Terrence Davidson was on Wednesday arraigned in court on charges of insider trading.
Mr Davidson denied the charges when he appeared before senior principal magistrate Stella Muketi.
He is accused of entering into an agreement with Suntra Investment Bank to acquire 664,899 Uchumi Supermarkets shares on his own behalf.
He is also accused of entering into another agreement with the same bank to acquire 300,000 shares of the same supermarket chain on his own behalf.
Mr Davidson allegedly committed the offences on December 2, 2005, and May 9, 2006.
According to the prosecution, Mr Davidson, being an insider in Uchumi Supermarkets, acquired the shares on the basis of unpublished price-sensitive information.
Same chain
He was released on a cash bail of Sh400,000. The case will be heard on October 16.
Last week, businessman Bernard Mwangi Kibaru appeared before Mrs Muketi facing similar charges.
Mr Kibaru is alleged to have dealt in Uchumi securities by instructing Drummond Investment Bank to dispose of 111,400 shares on his own behalf. The businessman allegedly committed the offence on April 26, 2006.
He denied the charge and was released on Sh400,000 cash bail. The case will be mentioned on October 14.
Barely two months ago, businessman Chris Kirubi and 13 others were arraigned in court on criminal charges related to the same chain of stores.
Mr Kirubi and 13 others denied conspiring to defraud Uchumi Supermarkets by selling a piece of land on which the supermarket's Aga Khan Walk branch stands for Sh147 million.
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