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Court Places Two Cytonn Investment Funds Under Administration

KenyanList

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The High Court has placed two Cytonn investment funds under administration following an application filed by the company’s CEO Edwin Dande.

The two funds, Cytonn High Yield Fund (CHYF) and Cytonnn Projects Notes (CPN) have faced extended periods of negative publicity and litigation over delayed payment of returns to investors.

Cytonn Investments blamed the delays on COVID-19 impact on cash flow, with Dande indicating that the administration will create time for the funds to restructure, recover and return value to investors.

“This is in the best interest of investors for several reasons. First, the administration provides an enabling environment for restructuring under a competent administrator. Second, it gives a moratorium on any ongoing collection efforts so that all investors get to be treated equally. It is going to be a difficult period but we shall accord the process all the support it needs to ensure that we come out of this as an even stronger brand and investor value is preserved,” said Dande.

“In any event, the assets remain safe, tangible and visible, but illiquid hence the need to restructure. We remain committed to always putting our clients’ needs first.”

Justice Alfred Mabeya ordered that Kereto Marima be appointed as the administrator of the two funds until November 24th when further instruction will be issued.

CHYF, a Collective Investment Scheme, pools contributions of at least one million from each investor with up to 80% of the portfolio being invested in real estate.

To restructure the debt of the two funds, Cytonn Investments said investors have converted Sh2.5 billion of their fund in CHYS and CPN into real estate for a year.
 
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