In a letter to CMC chairman Joel Kibe dated March 13, Mr Gatabaki said CMA had expected three of the motor dealer’s directors to step down on their own volition, creating room for the three nominees appointed by the regulator.

“We are, therefore, surprised by the ‘removal’ of Mr Muthoka and Mr Kivai by the majority of the directors in order to create two of the vacancies (Mr Kemoli’s resignation creates the third),” reads part of the letter.

“Given the current absence of consensus among the board members, the authority will have to review the situation before it can proceed with the proposed solution.”

The CMA’s apparent back-pedalling on the Monday coup met sharp reaction from Mr Kibe, who insisted that the new board will remain in place to oversee the company’s operations until January next year as the CMA had directed.

“CMA did not specify by what means its objective of reconstituting the board was to be achieved and the board will remain as it is till next year,” Mr Kibe said.

“This will not be a back-and-forth thing anymore. We will not allow them to be shifting goal posts,” he added.

The regulator had in a letter dated February 27 asked CMC directors to reconstitute the board, but retain chief executive Bill Lay and Finance director Mary Ngige and incorporate its three appointees. Seven directors of the motor dealer, including Mr Kibe, on Monday voted out Mr Muthoka and Joseph Kivai — who represented the interests of Andy Forwarders, the largest shareholder at CMC, saying the move was in line with CMA’s orders.

Mr Richard Kemoli, who represented the interest of former chairman Jeremiah Kiereini, was forced to resign before the other two were voted out.