Stanlib Kenya Takes A Break: Investors Get 45-Day Window to Resolve Issues
Investors Given 45 Days to Address Issues as Stanlib Kenya Fund and REIT Managers Cease Operations
Investors have 45 days to address any unresolved issues with Stanlib Kenya Fund and REIT Managers, as the Capital Markets Authority (CMA) of Kenya has accepted their request to cease operations and revoke their license. Established in 1998 as Stanbic Investment Management Services (EA) Ltd, Stanlib Kenya has been licensed by the CMA and the Retirement Benefits Authority for investment advisory and fund management services.
Background
Stanlib Kenya, owned by Liberty Holdings, a principal shareholder of Liberty Kenya Holdings Limited (listed on the Nairobi Securities Exchange), has a significant presence in Kenya’s financial market. This decision impacts its diverse portfolio and the stakeholders involved.
Transition Period and Investor Actions
Wyckliffe Shamia, CEO of the Capital Markets Authority, announced in a gazette notice that stakeholders must raise any issues within the 45-day window. Failure to do so will lead to automatic license revocation. The transition involves compliance with the Capital Markets Act, ensuring a smooth handover and resolution of any pending matters.
Acquisition by ICEA LION
ICEA LION completed its takeover of Stanlib I-REIT from Stanlib Kenya Limited on May 18, 2020, in a deal exceeding KSh1.5 billion. This acquisition, initiated in November 2019, marked a significant shift in the management of real estate investment trusts (REITs) in Kenya. Stanlib Kenya had operated as the promoter and REIT manager based on agreements from October and September 2015.
Implications for Investors
Investors must be proactive during this period to safeguard their interests. Addressing any outstanding issues promptly will ensure compliance and mitigate potential financial risks. This move also signals a broader trend in the financial sector, where consolidations and acquisitions are reshaping the landscape.
Stanlib Kenya’s decision to cease operations opens a critical 45-day window for investors to address unresolved issues. This transition, marked by ICEA LION’s acquisition, highlights the dynamic nature of Kenya’s financial market. Investors must act swiftly to ensure a smooth transition and secure their investments in this changing landscape.
