Three brothers have sued Cytonn Investment Limited for allegedly refusing to refund their Sh46 million.
Charles Nzioki Kanyaa, Harrison Kaloki Kanyaa and Robert Munyao Kanyaa claimed they invested the money in Cytonn’s Real Estate projects with a promise that they would get a handsome reward for their investment, but the company has refused to pay them back.
Through lawyer Kioko Kilukumi, the siblings want the court to order Cytonn Real Estate Project Notes, Cytonn High Yield Solutions and Cytonn Investments Management to refund them Sh46,792,603 and the interest the money has accrued from the time of deposit.
Nzioki, in his affidavit to support the application, stated that he was approached by a Cytonn representative in 2018 with a promise that if he invested Sh10 million in any of the company's investment arms, he would get a golden handshake in monthly returns.
He swore that the representative painted to him a picture of a liquid and financially stable company, which could be trusted with huge investments since they had no history of non-payment to investors.
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“It was from the convincing representation that I approached my brothers and we pooled our family resources to deposit the investments. Little did we know that the representation of the company was unconscionable, misleading and deceptive,” swore Nzioki.
He said that in October 2018, they pooled their family resources and jointly invested a total of Sh30 million in Cytonn High Yield Solutions with an agreed interest rate of 18 per cent to be paid monthly for 12 months.
In November 2019, said Nzioki, the company convinced them to increase their investments to be able to get more returns and they added Sh12 million, raising their total to Sh42 million with a new agreed interest rate of 20 per cent per month for two years.
Nzioki swore that the company continued to pay the interest until June 2020 when they stopped and unilaterally made a decision to vary the terms of agreement without consulting them.