Cytonn Investments is poised to auction several properties in a bid to recover Ksh11 billion owed to over 3,000 investors. This significant move follows a recent decision by the Court of Appeal of Kenya, which dismissed 19 appeals aimed at halting the auction process.
The properties on the auction block include The Alma, valued at Ksh1.43 billion, Amara Ridge at Ksh502.8 million, and Taraji Heights. The liquidation of Cytonn High Yield Solutions and Cytonn Real Estate Project Notes commenced in January 2023, marking a critical point in the company’s ongoing financial troubles.
Investors had been promised high returns, with expectations set at an 18% interest rate. However, many have expressed frustration as these returns have not materialized. Cytonn had previously collected billions from investors in 2020, shortly after the onset of the COVID-19 pandemic, leading to significant financial commitments that the company is now struggling to meet.
The liquidation process has been ongoing since January 6, 2023, following a protracted three-year legal battle. Cytonn Investments, founded by Edwin Dande and others after their departure from Britam, has been focusing on alternative investment solutions in real estate, structured solutions, private equity, and advisory services.
As the auction date approaches, the implications for investors are profound, with many awaiting clarity on the recovery of their funds. Dedan Maina, a financial analyst, remarked, “High yield is not a strategy – it is a marketing phrase,” highlighting the skepticism surrounding the investment promises made by Cytonn.
Details remain unconfirmed regarding the exact timeline for the auction and the potential outcomes for the investors involved. The situation continues to evolve, and stakeholders are closely monitoring developments as they unfold.
