Cytonn chiefs feel heat from irate investors
The fate of Cytonn Investments founders is on the cards as more people call for dissolution of the company’s key operations.
“We in the Built Environment need to start saying this more loudly and boldly; Cytonn needs to be stopped. A company cannot hold home buyers in perpetuity pain left, right and centre,” said the former chairman of the Association of Construction Managers of Kenya Okowa Nahashon.
“What financial innovation are you talking about when a developer takes buyers deposit and cannot deliver units more than three years down the line. What are they innovating? That’s not innovation, probably theft,” he posed.
Petitioners complaint
This comes as MPs are working to summon Cytonn director Edwin Dande (pictured) to answer the complaints of the petitioners. “The committee has not yet completed the matter; it has only met the petitioners. It will now meet Cytonn this month,” Alego Usonga MP Samuel Atandi said.
The troubles facing Cytonn Investments worsened after a judge ordered the liquidation of its investment arms to recover over Sh14 billion owed to some 4,000 investors.
Justice Alfred Mabeya ordered the liquidation of Cytonn High Yield Solutions and Cytonn Real Estate Project Notes.
He also ordered for preservation of the company’s assets and housing projects identified as “the Alma, Applewood/Miotoni, Riverrun, Ridge and Taraji” until the liquidation is concluded. Following the ruling, Cytonn has said it will not appeal the ruling but will abide by the court decision.
“The Principal Partner will not be challenging that conclusion unless we get written instructions from a majority of investors to challenge the liquidation order. We will fully cooperate with the official receiver in the liquidation of the two funds,” Cytonn said.
Citing Court documents, Commercial lawyer Caxton Kigata of Wamae & Allen Advocates said the administrator had not done anything to help the investors and the only option are refunds.
“Mabeya has castigated the Administrator for siding with promoters of Cytonn; declined to extend the administration and ordered the liquidation of investment projects owned by Cytonn in an effort to recover more than Sh11 billion the firm owes over 3,000 investors,” he said.
