The Capital Markets Authority (CMA) has initiated discussions with Genghis Capital Limited to address the firm's outstanding debt to its stakeholders.

This move, according to CMA, aligns with its mandate to protect investors and ensure transparency within Kenya's financial markets.

In a statement released on 22 January 2025, CMA emphasised that the assets of Genghis Capital's clients are held in segregated accounts, distinct from the firm's own funds.

This separation ensures that clients' investments remain safeguarded despite the firm's financial challenges.

"The operations of the Genghis Unit Trust Scheme are regulated under the Capital Markets (Collective Investment Schemes) Regulations 2023, which require clear separation of the roles of the fund manager from those of the custodian and trustee," the statement read.

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CMA further clarified that assets managed under the Genghis Money Market Fund and Mali Money Market Fund are securely held by a duly authorised custodian and are overseen by an independent trustee.

These measures are intended to uphold investor confidence and maintain the integrity of the schemes.

The Authority noted that it is seeking a detailed roadmap from Genghis Capital on how the firm plans to fulfil its unmet contractual obligations.

This engagement underscores CMA's commitment to ensuring accountability and protecting stakeholders in Kenya’s capital markets.