The high court has authorized an official receiver to dispose of one of Cytonn’s housing projects in Ruiru to recover some Sh14 billion the firm owes investors.
Justice Alfred Mabeya allowed the receiver to have the title documents for Riverrun and further undertake the valuation, division and sale of the property under the supervision of the court.
The High Court had in January last year placed Cyton High Yield Solutions (CHYS) and Cyton Real Estate (CRE) LLP under liquidation and appointed the official receiver as the liquidator.
The court found that the promoters and owners of the said companies were involved in a fraudulent scheme that saw the public lose over sh 13 billion.
The Court further ordered the preservation of the company's assets and housing projects identified as 'the Alma, Applewood, Riverrun, Ridge and Taraji until the liquidation is concluded'.
Following this decision, the official receiver in September last year filed an application seeking that 40.43 acres of the preserved asset-Riverrun be entrusted to him to dispose of the same and make recoveries for the creditors.
The Judge in allowing his application on Wednesday said the investor's funds amounting to Sh100 million were used to purchase the 40.6 acres held by the Cytonn Investments Management Plc (CIMP) and Cyton Real Estate (CRE) LLP in the property.
Based on this, the judge said the investors have a stake in the said property.
He said the respondents in the matter have not given any concrete reasons as to why the assets should not be realized for the benefit of the investors.
"The courts would not tire from pursuing justice and meting it out for the victims. One wonders where the regulatory watchdog was when Kenyans sank their billions into this bottomless pit. This is a sorry state of affairs, and the faster this matter is brought to a closure the better," said Mabeya.
