The Kenya Capital Markets Tribunal (CMT) is facing a severe operational crisis, crippled by a complete lack of quorum for close to five months now, leaving several high-profile corporate disputes and regulatory appeals in limbo.
Sources told Business Daily that the Tribunal has been without the quorum required to hear and determine appeals since mid-May 2026.
“We still lack quorum at the Tribunal. The JSC (Judicial Service Commission) advertised for the positions, and I think the recruitment process is still going on.
“There is a backlog of cases, and this, coupled with the uncertainty related to the nature of the disputes we deal with, is actually not a good thing for the investment space,” the source said.
The appointment of the Tribunal’s chairperson Paul Lilan as a judge of the Court of Appeal in January, coupled with the expiry of the terms of members and subsequent delays in State reappointments, has affected operations, locking in millions of shillings in pending cases.
Mr. Lilan had been appointed the chairman of the Tribunal for a three-year term following the revocation of the appointment of the former Chairperson Adrian Kamotho Njenga on May 22, 2023. The National Treasury appointed Mr Njenga via a Gazette Notice of April 19, 2023, with effect from the April 20, 2023.
However, a month later, the National Treasury revoked the appointment of Mr. Njenga and instead appointed Mr Lilan the new chairperson of the Tribunal, together with Constance Gikonyo, Godwin Wangongu, and Paul Wanga, as members for a period of three (3) years, with effect from May 26 2023.
The JSC in July 2026 advertised positions for the chairperson and two non-advocate members and set August 13, 2026 as the deadline for the submission of applications. The appointments haven’t been made.
The CMT settles complaints from persons aggrieved by a direction, refusal, limitation, restriction, revocation, or suspension imposed by the Capital Markets Authority (CMA) or the Investor Compensation Fund Board.
It also makes inquiries into matters referred to it in writing and issues formal, binding written awards or decisions distributed to concerned parties and the CMA.
The CMT was reconstituted in June 2023 after years of inactivity. Before its reconstitution, disputes arising from regulatory action in the capital markets were largely taken to courts. These cases were framed as judicial review or constitutional matters, focusing on whether due process had been followed in the course of taking regulatory action.
However, this kind of oversight, although important, left deeper issues around corporate governance failures, board responsibility, and market conduct unaddressed.
