Cytonn woes deepen after three businessmen sue over Sh46million investment fraud

Cytonn Real Estate Project Notes and others have been sued by three businessmen over Ksh.46.7 million investment money.

The businessmen – Charles Nzioki Kanyaa, Harrison Kaloko Kanyaa and Robert Munyao Kanyaa – want the court to order Cytonn to pay them the said amount for allegedly violating the consumer rights.

The trio claims that they invested with Cytonn High Yield a sum of Ksh.30 million at an agreed interest rate of 18 per cent payable monthly for a period of 12 months.

They claim that Cytonn representatives told them they would receive handsome monthly returns if they invested substantial amounts of money with them.

They admitted that, upon investing the said amount, they were paid the agreed monthly interest until June 2020 when Cytonn allegedly stopped making the monthly payment.

They further averred that on June 22, 2020, the investment wrote them an email seeking to vary the contractual agreement, however arguing that this alteration amounted to unfair practices under section 14 of the CPA.

The businessmen sought a refund of the principal sum which as of December last year had accrued interest amounting to Ksh,46,792,603.

“The defendants are in utter breach of the investment agreement, thereby provoking the filing of this suit,” read court papers.

They claimed that, after research, they established that long before COVID-19, the investment had liquidity challenges and was already in breach of many disputes.

Cytonn High Yield Solutions LLP and Cytonn Investment Management have also been named as respondents in the case.