Cytonn Issues Cease and Desist Order Against Capital Markets Authority CEO

Cease and desist notice in respect of defamatory statements uttered by yourself Mr Wycliffe Shamiah, FCPA, to the media, before the national assembly committee on finance and national planning, and published by the capital markets authority against Cytonn Investments Management plc ‘Cytonn’ on the authority’s website.

Cytonn CEO, Edwin H. Dande and CMA chief executive Wyckliffe Shamiah

Cytonn Investments Management Plc has directed the Capital Markets Authority (CMA) Chief Executive Wyckliffe Shamiah to “cease and desist from the publication of defamatory statements against Cytonn”.

The demand directed capital markets regulator to immediately pull down or cause to be pulled down and permanently delete with immediate effect the defamatory articles and related threads ‘due to their damaging effects’.

The demand was issued following an order that barred Cytonn Asset Managers Ltd (CAML) from onboarding new investors until it changes the names of its business and its regulated products.

Cytonn Investments, which is an independent investment management firm, has also demanded a public apology from CMA acknowledging the defamatory nature of the alleged articles.

Cytonn CEO Edwin Dande has also threatened to sue Mr Shamiah for allegedly “misleading the public and the government in regards to Cytonn and Private Offerings” if he shall not have complied within 7 days.

“We trust that you shall find our demands as justified in view of the repeated assaults made on Cytonn’s character by yourself, and take a practical view of the reputational damage and confusion you have caused in the minds of our clients and the public at large,” Dande said in the 19-page letter to CMA.

In the letter, Cytonn alleges that the defamatory statements from CMA put at risk investments of over 30,000 Kenyans valued at over Ksh20 billion.

“We are also seeking your removal from office given your continued misleading of the Kenyan Public, the Parliamentary Committee on Finance and Planning, and the Treasury Secretary with regard to Cytonn and with regard to Private Offers. It is our view that you have fallen far short of Article 10, National Values and Principles of Governance, and specifically Article 10 (2) (c) on good governance, integrity, transparency, and accountability,” said Dande in the letter.

CMA’s order to Cytonn to change its business and its regulated products is “to enhance investor protection and promote investor confidence in the integrity of capital markets”.

However, Dande reiterates that all actions carried out by Cytonn are done after getting the requisite approvals from the Authority.

CHYS as a private offer was duly vetted by the Authority under your leadership Mr. Shamiah as the then Director of Market Operations. The naming was co-created with the Authority under your leadership (from Cytonn Cash Management Solutions (CCMS)).”


Cytonn Investments to Capital Markets Authority CEO Cease and Desist