A dispute over access to information on the prolonged suspension of Mumias Sugar Company shares has reached the Commission on Administrative Justice (CAJ), with a shareholder seeking to compel the Capital Markets Authority (CMA) to explain its decision to withhold key details.
The complaint centres on unanswered questions about the regulatory decisions that have kept the sugar miller’s shares off the market for seven years and the steps investors need to know about before trading can resume.
Taiti Hanningtone lodged the review on September 23 under the Access to Information Act after the CMA declined to provide detailed responses to a request submitted by his lawyers.
The request contained 33 questions covering the regulator’s assessment of Mumias Sugar, the requirements for lifting the suspension, the possibility of delisting and the rights of shareholders who have been unable to trade their investments.
In a response dated September 18, the CMA outlined the history of the suspension, including directives issued in 2019 and 2020, but declined to address most of the issues in detail.
The regulator cited Section 13(2) of the Capital Markets Act and referred some questions to Mumias Sugar and its receiver-manager.
Hanningtone argues that the authority should have examined each question separately under Section 6 of the Access to Information Act and explained why specific records could not be disclosed.
He is asking the CAJ to direct the CMA to release information that is not protected from disclosure, including records that could be shared in edited or summary form.
The shareholder also wants the regulator to clarify whether Mumias Sugar has submitted a proposal to resume trading and identify the outstanding regulatory issues that must be resolved before the shares can return to the market.
He is further seeking details of the conditions required for the resumption of trading and information on the company’s obligations to shareholders during the suspension.
Mumias Sugar shares were suspended in September 2019 after the company was placed under receivership. The suspension was later extended indefinitely, leaving investors unable to trade their holdings on the securities exchange.
Under the Capital Markets (Public Offers, Listings and Disclosures) Regulations, companies with suspended securities must continue meeting certain listing obligations. The rules also provide for proposals to resume trading and outline circumstances in which delisting may be considered.
Hanningtone wants the CAJ to review the CMA’s response and order the regulator to provide specific reasons for withholding any information and disclose all records that can legally be made public.
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