Kenya suspends Equity Bank as stocks agent

Kenya's Central Depository and Settlement Corporation (CDSC) has suspended Equity Bank as a stocks agent for two weeks, it said in a letter to stockbrokers dated Wednesday.

"Please note that Equity Bank has been suspended as a CDA (central depository agent) for a period of 14 days with effect from April 8," the CDSC letter said.

"You are therefore advised not to allocate any orders to CDS accounts held through Equity Bank during the period of suspension."

It gave no reason for the suspension, and neither Equity nor the CDSC were immediately available for comment.

Equity does not hold a stockbroking licence but it acts as an agent by trading clients' shares through licensed players.

Kenyan investors are increasingly wary of trading on the Nairobi Stock Exchange after several cases of malpractice by stockbrokers.