Capital Markets Authority of Kenya · Kenya

Ernst & Young LLP (Kenya): fine by Capital Markets Authority of Kenya

Audit or matter: Uchumi Supermarkets Limited (2014 rights issue, reporting accountant)

What the regulator found

The CMA said a 2015 inquiry found serious misrepresentations in Uchumi Supermarkets' financial statements included in the 2014 rights issue information memorandum, and that EY failed to ensure adequate and accurate disclosure of material facts. The CMA said EY challenged the proceedings in the High Court, which upheld the CMA's mandate in March 2017, and that the Court of Appeal dismissed EY's appeal on 4 February 2022. The CMA also referred the firm and two partners to ICPAK.¹

Status: Penalty imposed 19 November 2025 (no further challenge reported in sources read)^1,2,3

Sources

1. Capital Markets Authority of Kenya, CMA takes Enforcement Action against Ernst & Young LLP (EY), the Reporting Accountant for the Uchumi Supermarkets Limited (USL) Rights Issue (19 November 2025)
2. The Star (Kenya), CMA fines former Chase Bank leadership, Ernst & Young over market rule breaches (20 November 2025)
3. Citizen Digital, CMA fines audit firm EY Ksh.10M over misrepresentation of 2014 Uchumi financials (20 November 2025)