Cytton Real Estate has been ordered to liquidate its properties in order to pay more than Sh14 billion which it owes to over 4,000 investors.
High Court judge Alfred Mabeya has also ordered a preservation of four of the company’s housing projects until all the other projects are liquidated and investors get paid their money. The four projects in questions are, ‘The Alma, Applewood/Miotoni, Riverrun, Ridge and Taraji.
Cytonn, once a buzzing real estate company collapsed in 2020 with billions of investors. Justice Mabeya has noted that more than 3,000 members of the public sank in excess of Sh11 billion through Cytonn High Yield Solutions (CHYS) and 886 others invested more than Sh4 billion in the Cytonn Real Estate Project Notes (CPN).
“The court must be sensitive and alive to the plight of over 3,000 members of the public who sank their over Sh11 billion and 886 others whose over Sh4 billion was sunk into these projects and therefore lean towards a lesser evil, which is to preserve those assets for the time being,” he stated.
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The judge also noted that there was no way that the firm’s fortunes could be turned around as the Administrator had confirmed that the company has no credible funding source.