ICEA Lion Group owner and the current Capital Markets Authority (CMA) chairman James Ndegwa has appointed former CMA CEO Paul Muthaura as the Groups CEO, to replace the retiring CEO Steven Oluoch.
Paul has been serving as the Company’s Chief Operating Officer since May 1, 2020.
The move was announced by Ndegwa on Wednesday, September 30.
Prior to joining the ICEA LION Group, Paul began his career in private legal practice rising to the role of Senior Commercial Associate at Daly and Figgis Advocates (now CMS Daly Inamndar). He subsequently joined the Capital Markets Authority (CMA) in 2005 where he held various positions including Head of Legal Framework, Head of Enforcement and Director, Regulatory Policy and Strategy and eventually Chief Executive from July 2012.
Ndegwa is the chairman of First Chartered Securities (FCS), a company that was started by his father in 1974.
FCS owns ICEA Lion, which owns ICEA Lion Asset Managers, which manages the ICEA Money Market Fund, all regulated by CMA.
ICEA Lion recently acquired Stanlib, hence Stanlib Money Market fund is also under ICEA lion. Stanlib Money Market fund is regulated by CMA.
FCS owns owns 12 percent in NCBA, which is listed in the Nairobi Securities Exchange; hence NCBA is also regulated by CMA.
NCBA also runs NCBA Money Market Fund, which is also regulated by CMA.
James Ndegwa is the chairman of CMA, despite the fact that NCBA bank, NCBA Money Market Fund, ICEA Money Market Fund, Stanlib Money Market Fund are all regulated by CMA, where he is the chairman.
The appointment of Muthaura, who carries the secrets of CMA while Mr Ndegwa is the chairman, could be seen as a conflict of interest, even as he (Ndegwa) faces accusations of stifling competition in the Money Market sector in Kenya.