Capital Markets Act

30D. Criminal liability for a defective prospectus

Edition: 2025-12-11 · In force

30D. Criminal liability for a defective prospectus

(1)A person who—

(a)makes a false, misleading or deceptive statement in a prospectus; or

(b)omits information or a statement from a prospectus which is required under this Act to be included,

commits an offence and shall be liable on conviction—

(i)in the case of an individual, to a fine not exceeding ten million shillings or to imprisonment for a term not exceeding seven years or to both; and

(ii)in the case of a company, to a fine not exceeding thirty million shillings.

(2)It shall be a defence in proceedings against a person in respect of an offence committed under subsection (1), to prove that—

(a)the statement was immaterial; or

(b)he or she had reasonable grounds to believe and did, up to the time of the issue of the prospectus, that the statement was true.

[Act No. 48 of 2013, s. 24.]

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Source: Kenya Law