Justice Pauline Nyamweya has quashed the decision by the Capital Markets Authority (CMA) to penalize former National Bank CEO Munir Sheikh and Head of Treasury Solomon Alubala.
The two filed the case before her in the Judicial Review division, citing bias.
In her judgment, which CMA gave notice that they will appeal, she said the regulator breached the right to a fair hearing by denying accused of crucial documents.
Under the Kenyan Constitution, the right to a fair trial is an inalienable right. It cannot be derogated at any point.
The two said they were denied these crucial documents to respond before the final decisions were made on their cases.
Munir and Alubala were among eight senior executives of troubled NBK who were fined millions of shillings and banned from holding office in any public listed company for up to 10 years for their roles in the cooking of books and theft of more than sh1 billion from the bank.
The regulator imposed a sh5 million fine on Mr. Munir, and banned him from holding any position in a public listed company before asking the Director of Public Prosecutions to conduct further investigations on the crime and charge the eight with criminal offence.
Solomon Alubala was banned from holding office and required to pay a fine of sh104.8 million.
Alubala was given the heftiest penalty as CMA said they traced two assets worth sh52.4 million hence it doubled the fine.