3 traders demand repayment of Sh6 million investment from Cytonn

3 traders demand repayment of Sh6 million investment from Cytonn

In Summary

•T he three want immediate payment of the stipulated sum of Sh6,424,954 together with interest on the same from the due dates till payment in full, being amounts due and owing to them.

•However, Cytonn says Covid-19 affected its business and all clients.

Gavel.
Gavel.
Image: FILE

Three businessmen have written to Cytonn High yield Solutions demanding over Sh6million pay arising out of an investment.

In a letter dated December 1, 2020, the three through lawyer Eddy Orinda claim that on diverse dates Cytonn executed contracts for investments, particulars of which are well within their knowledge.

"You have, however failed, to honor your obligations stipulated in the said contracts upon maturity of the investments", Orinda states in the letter.

Through Orinda’s law firm, the three want immediate payment of the stipulated sum of Sh6,424,954 together with interest on the same from the due dates till payment in full, being amounts due and owing to them.

However, Cytonn says Covid-19 affected its business and all clients.

According to Cytonn brand manager Daniel Mainye, details of changes to contracts were shared with clients.

"We shared the changes in the contracts to all clients, however some of them understand but others don't and we have been working on the restructuring to make sure all the investments are safe," Mainye told the Star on the phone.

Meanwhile, Orinda, in a letter wrote to Cytonn, “Take notice that if the aforementioned amounts are not remitted to us in full within 21 days from the date of receipt of this Notice, time being of the essence, you will be deemed to have been unable to pay your debts within the meaning of Section 514 (1) (b) of the Insolvency Act."

Orinda says if no action is taken, he will file a winding up petition against Cytonn at their own peril as to costs and other legal consequences.

Cytonn has further been told Orinda’s law firm has instructions from his clients to notify them over intentions to file a report with the Directorate of Criminal Investigations (DCI) for purposes of investigating the matter within seven days from the date of the letter.