Businessman wants Cytonn wound up
By Wainaina Wambu
| Dec 12th 2020 | 1 min read
A businessman has moved to the High Court seeking liquidation of Cytonn Investments over a Sh14.3 million debt.
In a petition, George Thogo says between October 2019 and February this year, he topped up his investment with the real estate firm, having previously invested with Cytonn.
The investment was under the firm’s High-Yield Solution Scheme. This included Sh7 million with a maturity date set for October 26, this year with a return of 19 per cent, and Sh4 million set to mature on April 27 with a return of 16.5 per cent.
The other was Sh1.99 million set to mature on August 10, this year, with a return rate of 16.5 per cent. On April 1, 2020, Cytonn sent him a statement adjusting maturity dates to all the investments. It argued it had “powers to unilaterally amend” the terms of the agreement.
The firm, he noted, is unable to pay the cash and should be wound up with the date of the statutory notice having lapsed. “That Cytonn Investments be wound up by the court under the provisions of the Company Act.”
Cytonn has been in the spot this year over failure to pay matured claims. The Capital Markets Authority in September raised alarm over Cytonn’s failure to honour matured investors’ claims of Sh122.8 million.
Are we seeing early indicators of a financial crisis?
- Safari Rally: Traders bag mixed fortunes as fans rev up sleepy lake town
- More hunger on the way as food inflation goes past 28-month high
- Why Kenya had borrow to repay a Sh17b Chinese loan
- More women now take up leadership positions in firms
- Top oil marketers tighten dominance in first 3 months