Jacob Segman, the former CEO of KenolKobil (now trading as Rubis), has been ordered to pay a fine of Sh5 million to the Capital Markets Authority (CMA) for failing to disclose his ownership stake in the then listed oil marketer over a decade ago.
The Capital Markets Tribunal upheld the fine imposed by the CMA in 2018, ruling that Mr Segman had breached the law by failing to reveal his 5.99 percent stake in KenolKobil. This was contrary to CMA regulations that compel directors to publicly disclose beneficial ownership of more than three percent in a listed firm.
KenolKobil failed to disclose Mr Segman’s ownership in regulatory filings made between 2008 and 2012. This was during the period when Mr Segman took up the position of chair of the KenolKobil board, while already serving as CEO.
“The appeal is hereby dismissed in its entirety. The enforcement action of the Capital Markets Authority against Mr Jacob Israel Segman, as communicated in the decision dated 16 August 2018, is upheld,” the tribunal said in the ruling delivered on May 22, 2025.
“Having reviewed the documents obtained by CMA, we find that the evidence compellingly indicates that the appellant was the ultimate owner of the 5.99 percent stake. The Swiss banking information is particularly persuasive since it identifies the appellant and his wife as the beneficial owners of the bank account that received KenolKobil dividends.”
The ownership was through an offshore company, Energy Resources Capital (ERC), founded in 2002 while Mr Segman was still the CEO of KenolKobil. The company was headquartered in the British Virgin Islands. ERC had a bank account with Credit Suisse Bank.
KenolKobil had wired $450,028.26 (Sh58.14 million at current exchange rates) to a Credit Suisse bank account as a dividend payout, money that Mr Segman had earlier claimed that it was a fee for his role in helping ERC acquire the stake in KenolKobil.
Investigations by CMA revealed that the account at the Zurich-based bank had been opened to receive payment from KenolKobil Plc, in which ERC had a 5.99 percent stake.
But Mr Segman had fought off CMA’s argument, saying that the money was payment for his consultancy role in helping ERC to acquire the stake in KenolKobil.
CMA records had shown that the 5.99 percent stake was under Ravi Haviv, Afriat Keren and Enfrati Simcha, through ERC. However, its bank account at Credit Suisse Bank was owned by Mr Segman and his wife, Dina, making the former CEO the ultimate beneficiary.
Mr Segman retired from his CEO position in July 2013, ending a 23-year stay at the helm of the oil marketer. He was replaced by David Ohana.
KenolKobil was closely linked to Nicholas Biwott, one of the most powerful politicians during the presidency of the late Daniel arap Moi.
In 2019, the company was bought by French oil major Rubis, ending the oil marketer’s existence, which also operated in Ethiopia, Burundi, Uganda, Rwanda and Zambia.
