Capital Markets Authority (CMA) has imposed a Sh.5 million fine on Mr Ciano and is also seeking to recover Sh13.5 million from him as profit from illegally supplying Uchumi with goods.

The markets regulator also banned Mr. Ciano from holding a public listed office for a period of five years.

A forensic audit conducted by audit firm KPMG revealed that Mr Ciano’s wife was a supplier of fresh produce raising the conflict of interest.

Despite the obvious conflict of interest, the former CEO also cleared over invoiced payments while allowing her to continue supplying the supermarket.

“On findings of conflicts of interest, the former CEO was established not to have disclosed his conflict of interest involving USL business partners,” CMA said in a statement.

The capital markets regulator said Mr Ciano was particularly culpable of misleading the board and shareholders of Uchumi’s financial strain leading to its near collapse.

Those also fined by the CMA include former Chief Financial Officer Chadwick Okumu, board directors James Murigu, Bartholomew Ragalo as well as chairperson Khadija Mire.