From a person Experience i would advice anybody contemplating trading in shares to think critically who your stock broker agent will be.Existence of bogus stock brokers in kenya have made milions of investors lose alot of money.A clear example is the Francis and Thuo company saga ,which collapsed due to huge unpayable debts.
Despite reports that the firm was issuing bad cheque to clients the capital markets authority just watched ,which eventually culminated to the collapse of the firm.Client money worth ksh 400 million was left hanging of its whereabouts.
The now rejuvenated firm is in the process of being acquired by a Russian investment firm,which it is hoped will instill the much lacking discipline in brokerage firms.
Recently Nyaga stock brokers ,one of the largest stock broking firm in kenya ,occupying a 40% retail share of the market,received warning from the capital markets authority due to issuance of bad cheques,one wonders why these guys with all the market share they hold would issue bad cheques.
I have heard numerous complaints about them,one being that once you place an order it takes more than 3 weeks for the order to be bought,by th end of 3 weeks the equity share which was trading at 74.50 is now trading at 122.50,pure agony.
The Capital markets authority should regulate these stock broking firms to prevent frauding their retails.Most of these incidents like delays in order execution happen to retail investors.
Corporate investors are treated in like gods.
But,all is not lost as the recent report by a task force has spelt clear measures on the management of stock broking firms.
Do not be caught offguard.Take Caution.
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