8.10 Insider dealing

8.10 INSIDER DEALING

Insider dealing, also known as insider trading, refers to the illegal practice of trading securities (such as stocks, bonds, or derivatives) based on material, non-public information about the company. It involves individuals who have access to confidential information about a company, typically due to their position within the company, using that information to make profits or avoid losses by trading in the company’s securities.

• Directors of the company
• Employees of the company
• Professionals with links to company e.g. auditors, brokers
• Friends and relatives of directors, employees and professionals.

Insider trading is a criminal offence and persons guilty of the offence shall be liable to a penalty;

1. In case of individuals, a  fine up to Ksh.2.5m
2. In case of a body corporate, a fine up to Ksh.5m

NB: The fines are doubled in case subsequent conviction.