Cytonn Investments Management Plc says it will appeal against the High Court directive that dismissed their petition that sought to challenge the Capital Markets Authority directive limiting their projects under its asset managers unit to 10 per cent.

Cytonn CEO Edwin Dande alleges that the ruling that was delivered in favour of CMA, “The learned judge misdirected himself in law and misapprehended the facts.”

As per Mr Dande, they have already filed a notice of appeal.

“We are playing for the long haul and posterity. We have already filed a notice of appeal, the appeal is being prepared and we shall challenge the decision in the Court of Appeal,” he said via his Twitter feed.

Mr Dande insists that as per the CMA regulation 16 (2) of the Collective Investment Schemes, regulations can tell they don’t apply to Cytonn High Yield Fund (CHYF).

The CHYF was launched in 2019,  giving a 15 per cent rate of return annually.

Cytonn Asset Managers Ltd (CAML) is regulated by both CMA and the Retirement Benefits Authority (RBA).

The funds managed by the entity under the approved Collective Investment Schemes are; Cytonn Money Market Fund; Cytonn Balanced Fund; Cytonn Equity Fund; Cytonn Africa Financial Services Fund; Cytonn Money Market Fund (USD); and Cytonn High Yield Fund.

Cytonn Told to Change Name For Transparency and Accountability

The Business Daily reported that Cytonn had put Ksh 123 million in the real estate properties equivalent to 64 per cent of the money pooled by investors in the CHYF.

Under the scheme, CMA regulations allow pooled funds to invest less than 25 per cent in one single entity with the law prohibiting CIS funds from investing more than 10 per cent related parties.

However, the Cytonn Chief Executive says the directive issued by Justice Francis Tuiyott will impact its investments making it impossible for them to up to 80 per cent in the firms’ related projects.

“It’s so clear. The expedient thing to do would be to accept, the right thing is to fight on. Take for example Acorn, all their Real Estate Investment Trusts (REIT) funds are invested in Acorn projects, why should it be any different for Cytonn? he paused.

“This is a long game, we shall go up to the Supreme Court if necessary. We are creating jurisprudence in capital markets…We are on the right side of history, in the fullness of time. We shall be vindicated.”

 

Cytonn High Yield Solutions and Project Notes Placed Under Administration

Community Engagement Editor at Khusoko. I connect with our audience, deliver news on various platforms, and diversify voices on our website. I excel in social-media and multimedia.

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