The Capital Markets Tribunal has upheld a Ksh 5 million penalty against Jacob Israel Segman, the former CEO and later chairman of KenolKobil (now Rubis), for failing to disclose his 5.99 percent stake in the company over a decade ago. Under Capital Markets Authority (CMA) rules, directors must publicly declare any beneficial ownership exceeding 3 percent in a listed firm.

In its May 22, 2025 ruling, the tribunal dismissed Mr Segman’s appeal in full, confirming that he breached disclosure regulations by concealing his near-6 percent holding between 2008 and 2012. Court documents highlighted Swiss banking records tying Mr Segman and his wife, Dina, to the Credit Suisse account that received substantial dividend payments from KenolKobil.

The shareholding was held through Energy Resources Capital (ERC), an offshore entity incorporated in the British Virgin Islands in 2002 when Mr Segman still helmed KenolKobil. During the period in question, KenolKobil wired US $450,028.26 (approximately Ksh 58.14 million) into ERC’s Credit Suisse account as dividends. Mr Segman had argued these funds were consultancy fees for advising ERC’s acquisition of the stake.

However, the CMA’s investigation found that although official records listed the shares under the names of Ravi Haviv, Afriat Keren, and Enfrati Simcha via ERC, the Zurich bank account was ultimately controlled by Mr Segman and his wife, making him the true beneficiary of the dividends.

Mr Segman concluded a 23-year tenure at KenolKobil in July 2013, stepping down as CEO and handing leadership to David Ohana. He remains liable for the fine, which the tribunal reaffirmed is necessary to maintain transparency and investor confidence in Kenya’s capital markets.