The High Court on Thursday, July 1st handed a reprieve to Cytonn after issuing a temporary injunction that restricts the Directorate of Criminal Investigations (DCI) from initiating an investigation against the company's firm managers.
Under the terms of the temporary injunction, the DCI cannot summon, investigate or question Cytonn's bosses with regards to the Cytonn High Yield Solutions (CHYS) which has been the subject of controversy in the past few months.
There has been an increasing number of complaints from the CHYS after Cytonn failed to pay the agreed-upon interest on funds deposited by their clients.
A Cytonn real estate project in Nairobi/ Photo Courtesy
In a recent news feature done by a local media house, a 39-year-old widow revealed how she had failed in attempts to withdraw Ksh 2.9 million she had deposited with Cytonn.
As one of the 4000 subscribers to Cytonn's High Yield Solutions, Carol Mbugua earned 18% off her deceased husband's pension money starting in 2018 when she invested the money with Cytonn.
"Beginning of 2020, Cytonn had a problem with payment of interest. At times there was a two-week delay and in May they stopped paying," Carol said of Cytonn's money troubles began.
In November of the same year, Carol's investment with Cytonn matured and she applied for the money to be returned to her. At this point, she was jobless and her first child was heading to secondary school. She has not received a penny to date.
All subscribers to the CHYS who have sought a refund of their investment have been met with a response alluding that the firm's money troubles have been the economic effects of Covid19.
In his defence, Cytonn CEO Edwin Dande has claimed that the firm is unable to turn its investments into liquid cash.
"Either you wait in the pool and as we sell, we pay or you take one of these apartments," Dande said in reference to a question on how the firm would reimburse its investors.
