The High Court has ordered that a prime land belonging to Cytonn Investments be auctioned and the proceeds be used to pay investors who invested in the Cytonn High Yield Solutions that was placed under liquidation.
Following the order, the official Receiver will now take over the prime 40-acre parcel of land in Ruiru, Kiambu County, belonging to companies linked to Cytonn, for sale.
In the ruling, High Court judge Alfred Mabeya dismissed objections from the affiliate companies who had argued that they were different entities from the Cytonn High Yield Solutions.
“The money loaned to the two companies have not been paid up and the only recourse is for the said property to be vested in the Official Receiver for him to liquidate the same for the benefit of languishing investors,” Justice Mabeya ruled.
A report that appeared in a local daily said that the Official Receiver had asked the High Court that he be allowed to have the title documents for the property that is known as Riverun in Ruiru, Kiambu County.
He had also asked the High Court that 40 acres be given to him as the liquidator of the Cytonn High Yield Solutions and Cytonn Real Estates projects.
At the same time, he had also requested the High Court that 50.08 acres should be registered in the name of Muiruri Laban Limited (MLL).
“Muiruri Laban Limited (MLL) was the registered proprietor of the property with 50 percent rights while Cytonn Real Estate LLP had the technical know-how and Cytonn Investment Management Plc (CIMP) was to raise funds for the projects, and each acquired 25 percent rights,” the report in the daily stated.