Former CJ Willy Mutunga has been appointed to an Adhoc Board Committee by the Capital Markets Authority to determine the allegations contained in a case of insider trading.
Mutunga is part of an 8-member Adhoc Committee comprising of four CMA board members and four independent persons.
The 4 independent members are Mutunga; Dr Jim McFie, a respected academic and business leader, Patricia Kiwanuka, President of the CFA Society of East Africa and Anne Eriksson, former Country and Senior Regional Partner PWC.
Insider trading is the practice whereby a stock trader in the Nairobi Securities Exchange uses confidential information about a company to make profits by buying or selling shares relating to that company.
In the case which will be heard by the former Chief Justice, an international petroleum company is accused of insider trading.
The company has since been de-listed and the public has been barred from trading its shares thus choking the companies revenue streams.
CMA went further to recover Ksh19 million of illegal gains made from the insider trading at the firm.
This is an additional recovery following the recovery of Ksh458 million in March 2019 by the authority.
The money has been paid to the Investor Compensation Fund which repays investors who have been defrauded.
The fraudulent trades were made through a total of 14 trading accounts that have since been frozen.
The Capital Markets Authority has been cracking the whip on cases of insider trading at the exchange which defrauds innocent Kenyans.
