CMA Warns Genghis Capital Amid Unmet Obligations, Asset Auction, and Mali MMF Saga

The Capital Markets Authority (CMA) has moved to quell investor panic after rumors swirled that Genghis Capital Limited, one of Kenya’s prominent fund managers, had been placed under statutory management.

In a March 11, 2025, statement, the CMA clarified that no such action had been taken but revealed that the firm faces urgent operational challenges, including unmet contractual obligations to a third party.

This development comes amid a cascade of crises for Genghis: a bitter rift with Safaricom over the Mali Money Market Fund (MMF), a Sh355 million debt default triggering asset seizures, and a troubled historical legacy tied to the collapsed Chase Bank and political intrigue.

Recent Troubles

Genghis Capital’s woes escalated in January 2025 when South African businessman Auswell Mashaba instructed auctioneers to seize its office assets—including furniture, laptops, and printers—over a $2.74 million (Sh354.55 million) debt.

Court documents reveal the debt originated from a 2017 loan of Sh293 million, which ballooned to Sh401.1 million with interest.

Despite a 2021 consent agreement to repay in installments, Genghis breached terms, prompting Mashaba’s recovery bid.

While CEO Edward Wachira assured investors that client funds in Genghis-managed portfolios (including the Mali and Hela Imara funds) remain safeguarded by independent trustees and custodians, the auction has stoked fears of broader instability.

The CMA has since demanded a repayment plan from Genghis.

The Mali MMF Saga

The firm’s troubles intensified in 2024 amid a public fallout with Safaricom over the Mali MMF, a mobile-based investment product launched in 2019 to tap M-PESA’s 66 million users.

The partnership soured after a July 2024 data breach exposed Mali users’ balances, prompting onboarding suspensions and technical overhauls.

By December 2024, Safaricom unveiled Ziidi, a rival fund managed by Standard Investment Bank, ALA Capital, and Sanlam, sparking accusations of betrayal from Genghis.

In a protest letter, Genghis accused Safaricom of breaching their 2020 agreement by refusing to launch Mali, migrating users to Ziidi without consent, and denying the partnership’s existence.

Safaricom countered that Mali’s “rickety” platform necessitated delays and emphasized Ziidi as a separate product.

The telco’s insistence on multiple fund managers for “risk diversification” hinted at deeper tensions, including alleged discomfort with Genghis’ political links to former President Moi’s family.

Investor Panic

By January 2025, Mali investors faced withdrawal delays amid Genghis’ debt crisis, triggering panic. Safaricom blamed “technical issues,” but users, fearing asset losses, flooded social media with complaints.

Despite Genghis’ reassurances—noting Mali’s Sh3.1 billion assets are held by KCB Bank (trustee), SBM Bank (custodian), and audited by RSM Eastern Africa—trust eroded. Mali’s has 700,000+ investors.

Chase Bank’s Shadow

Genghis’ current woes echoes past crises. In 2016, Chase Bank’s collapse left Genghis—then a subsidiary—stranded with 80% of its deposits frozen.

Directors, including former Chase executives, sold shares to new owners in a liquidity scramble.

This ownership shift, however, drew scrutiny from the Kenya Deposit Insurance Corporation (KDIC), which in 2020 sued Genghis and subsidiary Boulevard Properties for allegedly aiding Chase’s looting. Genghis denied wrongdoing, citing post-2016 ownership changes.

The Moi Family Factor

Political undercurrents further complicate Genghis’ trajectory.

In 2022, Alex Chesosi, an ally of Gideon Moi (son of former President Daniel arap Moi), became Genghis chairman.

Though Chesosi resigned in 2023, sources claim top officials opposed Safaricom’s sole reliance on Genghis due to perceived Moi family ties—a friction point in President William Ruto’s administration.

Safaricom’s pivot to Ziidi, partnered with Ruto-aligned entities, highlights this tension.

Genghis, however, denies Moi ownership, attributing shares to MNW Nominees Ltd.

Investor Implications: Separated Funds vs. Reputational Risk

The CMA maintains that client funds in Mali and Hela Imara are legally segregated from Genghis’ assets, insulating them from the firm’s liabilities.

Yet, reputational damage persists. Genghis’ equity trading rank has plummeted since its NSE heyday (7th largest in 2016), and the Safaricom rift risks ceding the lucrative mobile investment market to Ziidi.

Genghis Capital stands at a crossroads.

While the CMA’s intervention offers a regulatory lifeline, the firm must navigate debt repayment, legal battles, and restored investor trust.