Business

How Cytonn Investments Pulled A Sh10 Billion Heist

Loading...

Cytonn Investments Scandal: Thousands of investors are staring a loss of more than Sh. 10 billion after investing in Cytonn Investments. This comes as the scandal at Cytonn goes full blown with investors crying foul and the Capital Markets Authority announcing that Cytonn is currently under investigations.

According to a report that appeared in the Business Daily on Friday, the CMA opened investigations into Cytonn High Yield Solutions (CHYS) and Cytonn Project Notes (CPN)—which have investments worth Sh. 13.5 billion.

In a related report that appeared in the Daily Nation, Cytonn successfully pulled off the scandal by coming up with “two products with similar names that confused the not-so-sophisticated investors. One of the investment products– Cytonn High Yield Fund (CHYF)–is regulated by the Capital Markets Authority (CMA) and the other known as the Cytonn High Yield Solutions (CHYS), which has characteristics similar to an ordinary merry go round fund, is not.”

Loading...

This report says that this ensured that investors could not tell the difference between the regulated and unregulated. However, Cytonn chief executive officer Edwin Dande says that it is not his fault that investors could not tell the difference. “In an interview yesterday retorted that he is an investment manager, not a magician who can mysteriously turn real estate into cash,” the report quoted him. It added that he said the unregulated product largely invests in the real estate sector, and operates like a Chama (merry-go-round).

Yesterday, the CMA asked aggrieved investors to report their grievances to the police.

“Investors who are affected by investing in unregulated products should report to the Capital Markets Fraud Investigation Unit (CMFIU), which is the Police Unit attached to the Capital Markets Authority,” CMA chief executive officer Wyckliffe Shamiah said, adding that CMFIU is currently investigating the issue for criminal violations for investors in the Cytonn High Yield Solutions (CHYS). “The Authority confirms that Cytonn Investments is not a licensed and approved entity,” he said.


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
Loading...

Related posts

EABL Increases Alcohol Prices

nairobi-exposed

Kisii: KPLC Dangling Polls And Cables Are A Death Trap

Nairobi Guru

Ben Githae Is At It Again With A Song Praising BBI

nairobi-exposed

Kenya Airways Eases Ticket Prices For Kenyans Stuck Abroad To Nairobi But Stiffens Travel Conditions

nairobi-exposed

Facebook’s $100 billion-plus Rout is The Biggest Loss in Stock Market History

admin

Gamblers Who Bet Using Less Than Sh100 Risk A Sh5M Fine

nairobi-exposed

Leave a Comment