Cytonn Investments Liquidation: An investor has sued Cytonn Investments over Sh. 14,264,538 investment that the firm has failed to pay him. The investor who was identified as George Kirigi Thogo has asked the court to liquidate Cytonn Investments.
In advertisement that appeared in the Daily Nation, the case is being heard at the High Court’s Nairobi Commercial and Admiralty Division.
A related report on this suit that appeared in the Daily Nation adds that Kirigo had invested in Cytonn’s High Yield Solution (HYS) Scheme. He first invested Sh. 7 million, then Sh. 4 million and finally Sh. 1,994,883.
“He also invested Sh. 4 million with a maturity date of April 27, 2020 at an agreed return rate of 16.5 per cent and later, Sh. I,994,883 with a maturity date of August 10, 2020 at an agreed return rate of 16.5 per cent. The Sh. 7 million had a maturity date of October 26, 2020, at an agreed return rate of 19 per cent,” the report said.
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However, in a rejoinder, Cytonn said that the advert was malicious. “The advertisement is malicious as Cytonn Investments Management Limited, CIMP, has no contract with the claimant, there is no windup petition coming up for hearing and CIMP shall seek to absolve itself. All our funds remain operational,” Daniel Mainye, the Cytonn senior brand manager said in a statement that was posted on the firm’s website.
In October this year, Cytonn chief executive officer Edwin Dande said that Cytonn was witnessing increased cash withdrawals from investors. “I know the amount but its confidential nothing to worry about you’ll not hear any money market fund investor saying I can’t get my money,” said Dande in a report that was published by The Standard.
This had followed reports in the media saying that the firm had failed to honour maturity dates for investments. Dande said that the investment firm was facing a Covid-19 negative financial impact and had been forced to restructure some its investment products. “Every real estate developer is dealing with those issues as long as you have good mitigation measures you will be fine but you have to explain yourself to investors and the public, in the same way, were doing,” said Dande. He noted that this was the reason why maturity of the firm’s products had been prolonged or extended.
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In the same month, Cytonn was sued by an investor who was seeking to recover his money. The Standard reported that Kenneth Kasinga wanted a permanent injunction preventing Cytonn from extending the maturity date of his investment. He claimed that Cytonn unilaterally gave him the option of extending his investment by 12 months after the date of maturity or enter an agreement for an additional two years after the date of maturity, a decision he had to make within 30 days. He had invested Sh. 3 million into the Cytonn High Yields Solutions after getting the proposal to invest in the Cytonn product with 19 per cent annual interest. Cytonn Investments Liquidation.