New twist has emerged in the case involving Nairobi-based forex trader Michael Gitonga, also known as ‘Tosh’, after the High Court issued a temporary order that stopped both his prosecution and the suspension of his company, Trade Sense Limited.
This decision has brought new attention to the case, which had already attracted public interest due to the large sums of money involved and the growing concerns over online forex trading in Kenya. The court’s ruling now blocks the criminal charges that had been filed against Gitonga. He had been accused of defrauding his clients of Ksh 215.3 million, a serious claim that had also led to the suspension of Trade Sense Limited by the Capital Markets Authority (CMA).
The suspension was supposed to last 90 days, starting from March 3, 2024, and had been based on concerns related to weak governance, failure to follow financial regulations, and possible links to money laundering.
With the new court order, this suspension has also been lifted, allowing the company to continue its operations for now.Gitonga had faced multiple accusations, mostly related to fraud. One of the main claims was that he diverted more than Ksh 212 million in client funds between April 2022 and August 2024.
This went against CMA regulations, which clearly state that money managers are not allowed to handle client funds directly. These rules are meant to protect investors from losing money in cases of mismanagement or fraud.
Gitonga’s alleged actions, show a serious breach of trust and the law .The High Court’s move to stop the prosecution and lift the company’s suspension has raised many questions, especially about how well financial regulations are being enforced in Kenya.
With the court allowing both Gitonga and Trade Sense Limited to continue operating until the full hearing of the case in July 2025, there are concerns about the safety of other investors who might not be aware of the pending accusations.
It also puts pressure on the CMA and other regulators to explain how such a case was allowed to develop and whether there are enough safeguards in place in the fast-growing online forex trading sector.
This case shows the ongoing struggle between promoting innovation and protecting the public in a market that is still loosely monitored.
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