Cytonn Troubles Deepen as KSh 55.5 Million in Fresh Claims Emerge
Cytonn Asset Managers Limited continues to be in the spotlight as investors unable to liquidate their investments worth KSh 55,471,430.87 seek intervention from Capital Markets Authority (CMA). The investors put their money in the Cytonn High Yield Solutions (CHYS).
In a recent communication from CMA to the Chief Investments Officer at Cytonn, Elizabeth Nkukuu, the Capital Markets Authority (CMA) ordered Cytonn to resolve investors complains over the firm’s decision to extend maturities of investments.
“Further to our letter dated 21st September 2020 sent to Cytonn Investments Management Limited, the Authority has received fresh complaints from investors who have allegedly invested in the Cytonn High Yield Solutions (CHYS) and Cytonn Project Notes (CPNs) Investments managed by Cytonn Investments Management Limited. Kindly ensure quick resolution of these and any other outstanding complaints,” said Abubakar H. Abubakar, Acting Director of Market Operations, CMA.
These new claims against Cytonn Asset Managers Limited are in addition to the earlier complaints amounting to KSh 122,837,051 from aggrieved investors in the CHYS and Cytonn real estate.
In a supplementary affidavit lodged by CMA at the High Court in Nairobi, CMA states that it has received fresh complaints amounting to KSh 100 Million on account of Cytonn Asset Managers’ failure to meet contractual obligations owed to investors.
CMA mentions that out of this amount, complaints amounting to KSh 55,471,430.87 have already been communicated to Cytonn and that the asset manager is yet to act on the matter.
The ten fresh complaints, lodged at the CMA, have claims ranging from KSh 303,678.00 to KSh 30.6 Million, cash that had been invested by Cytonn in its various products, including the CHYS, CPN, and The Ridge-a real estate property development.
Edwin Dande, the Managing Partner and CEO of Cytonn Investments Management Limited, has filed a suit against CMA for infringing on the Collective Investments Schemes(CIS) regulations and violating the supreme law through the administrative actions the regulator has taken against Cytonn.