In September 2020, the Capital Markets Authority (CMA) warned clients of Cytonn Investments Management Plc over the firms High Yield Fund.
This, they said, “exposes the investors to the risk of losing the hard earned monies they have invested in the event of any adverse eventuality in Cytonn Investment Management Plc and its promoted Real Estate or other investments as the concentration risk is higher on account of the investments being all under related entities.”
The Authority further argued that while Cytonn Investments needs to make profits and meet obligations, this does not absolve either Cytonn Asset Managers Limited or Cytonn High Yielding Fund as well as CMA from their statutory duties.
This was after CMA received complaints from investors who were owed over Kshs.122.8 Million in unpaid claims and that they were unable to cash in their investments-that have matured.
Cytonn had blocked investors from pulling out cash from real estate fund due to the uncertainities occasioned by the Covid-19 pandemic.
Cytonn told investors that it had extended the maturity date of this fund by 90 days.
“Reduced construction activity, closure of lands offices and slowed purchase of real estate units” are the reasons cited by Cytonn Investments, “for extending maturities for this fund 90 days- a period within which it expects its construction sites to reopen,” according to a statement by Mr Edwin H. Dande, CEO Cytonn Investments Management Plc.
Many months after the firm started struggling, and having a rough time in and out of court over myriad of issues, it emerged that in 2021, the irate investors are working hard to leave the company.
Just one week alone, investors have withdrawn over Kshs.200 million.
“In the last week, investors shipped out with over Sh200 million in two days”, anonymous source told 254news.co.ke
This the source said is according to data by the CMA.
“Since last year, I have had panic attacks because of the money I invested in Cytonn. I don’t know if I’ll ever get my money”,
Panic withdrawals From Cytonn Investment Management LTD. This Issue needs to be properly addressed to avoid Lose of Funds and Employment Opportunities created by that Fund Manager. If its Pandemic Effects Let it be Crystal Clear. KE Financial Sector might Badge itself a Bad Image
— Abbot Krober (@Michael_Olili) September 25, 2020
https://twitter.com/NicoleJoean/status/1309544879916224513?s=20
There's no story that cannot be told. We cover the stories that others don't want to be told, we bring you all the news you need. If you have tips, exposes or any story you need to be told bluntly and all queries write to us [email protected] also find us on Telegram
