ADVOKS GLOBAL · KENYA
Capital Markets Act
34A. Offences and penalties
Edition: 2025-12-11 · In force
34A. Offences and penalties
(1)Where a person commits an offence under this Act and no specific penalty is provided for, that person shall be liable on conviction—(a)on a first offence, in the case of—(i)an individual, to a fine not exceeding five million shillings or to imprisonment for a term not exceeding two years and pay two times the amount of any gain made or loss avoided as a result of the contravention; or(ii)a company, to a fine not exceeding ten million shillings and pay two times the amount of any gain made or loss avoided as a result of the contravention;(b)on any subsequent offence, in the case of—(i)an individual, to a fine not exceeding ten million shillings or to imprisonment for a term not exceeding five years and pay three times the amount of any gain made or loss avoided as a result of the contravention; or(ii)a company, to a fine not exceeding thirty million shillings and pay three times the amount of any gain made or loss avoided as a result of the contravention.(1A)The financial penalties imposed under subsections (1) and (2) shall be recoverable summarily by the Authority as civil debts.(2)The court may make an order for the payment by a person convicted for an offence under this Act of compensation to a person who suffers loss by reason of the offence.(3)An order for compensation under subsection (2) may be in addition to or in substitution of any other penalty or remedy available to that person.(4)The amount of restitution or compensation for which a person is liable under subsection (2), is—(a)the loss sustained or adverse impact of the breach on the person or persons claiming compensation or restitution;(b)the profits that have accrued to the person in breach;(c)where harm has been done to the market as a whole, the illegal gains received or loss averted as a result of the illegal action as may be determined by the court.(5)To the extent that a person convicted of an offence under subsection (1) profited by committing that offence, but those harmed cannot reasonably and practically be determined, the payment under subsection (3) shall be made to the Compensation Fund established under this Act.(6)The discretion conferred on the Authority to levy financial penalties or to impose any other sanctions under this Act may be exercised separately or cumulatively, and the imposition of such penalties or sanctions shall not, in any circumstance, prejudice the right to any other legal proceedings that may be vested in the Authority.(7)All financial penalties levied under this Act shall be paid into the Investor Compensation Fund.