US watchdog suspends shares of firm allegedly in Sh139b deal with Kenya

National Treasury CS Ukur Yattani (PHOTO: FILE)

NAIROBI, KENYA: United States Securities Exchange has suspended trading of Kallo Inc shares, a company that claimed to have entered into Sh139b loan contract with Kenya for healthcare financing.

According to CS Ukur Yattani, Kallo Inc claimed in its recent filings with SEC to have entered into the Covid-19 loan contract with National the National Treasury and Planning.

On March 22, National Treasury lodged an official complaint with SEC over the loan contract, it requested the Treasury to investigate the matter with the potential to irreparably harm Kenya’s fiduciary standing in the international community including with foreign investors.

America’s Securities Commission said it has serious concerns, for example, about the accuracy of the Company’s claim that it has entered into a contract with Kenya to establish a comprehensive healthcare structure.

“The Commission believes that the public interest and the protection of investors require a suspension of trading in the securities of the above-listed company,” said Vanessa A. Countryman Secretary
“That trading in the securities of Kallo Inc is suspended for the period from March 24, 2021, through to April 7, 2021.”

The Company’s common stock is quoted and traded on OTC Link whose parent company is OTC Markets Group Inc., under the ticker symbol KALO.

In its filing, the company said it signed the deal with Kenya last year to build hospitals across the country in the face of Coronavirus outbreak.

The loan would be paid in three tranches.

However, SEC, while suspending the company, noted that “there is a lack of accurate information of questions regarding the accuracy of statements the Company has made in filings with the Commission, including a Form 10-K for the year ending December 31, 2020, filed on March 3, 2021.”