Cytonn Takes CMA Head On; Court Issues A Red Card

The battle between Cytonn Investments and the Capital Markets Authority (CMA) took a different twist after a court issued orders barring the regulator from exposing Cytonn to unwarranted harassment.

The reprieve from the court follows a hurriedly launched “criminal probe” by the Capital Markets Authority as an attempt on their part to disown their engagement over a long period of time with Cytonn Investments on one of the two funds facing liquidity challenges like all real estate funds in light of Covid-19.

Cytonn had moved to court under an application of urgency seeking conservatory orders to bar CMA, its employees, servants, and or agents from summoning, investigating, questioning, intimidating, harassing, and or in any way whatsoever interfering with the activities of Cytonn.

Read More: Cytonn CEO Tells CMA To Stop Destabilizing Markets

Here are the prayers that Cytonn was seeking before the court:

While issuing the orders, the court agreed with most of Cytonn’s prayers. Cytonn has accused CMA of being dishonest while addressing concerns from a section of Kenyans about the products the real estate company offers.

Read More: The Cytonn Equation: What Lies In The Roots?

Here are the orders:

According to Cytonn, there are other players offering products similar to what it offers, “hence it is very damaging to Capital Markets for the Authority to be seen to be treating market players differently.”  The orders now put CMA on the check as it retreats to contemplate on the next move.

Read More: Cytonn Issues A Statement To Clarify On Progress Of Its Projects And Service

According to Cytonn, CMA was part of creating, naming, and approving CHYS as a Private Offer since 2016. When the product ran into liquidity challenges like all real estate funds during Covid 19, CMA then hurriedly launched a “criminal probe” as an attempt to disown the product and mislead the public as to their involvement.

The management at Cytonn says it approached the court to (1) get a reprieve from CMA’s harassment and (2) also to seek the court’s interpretation of what constitutes a Private Offer. Attached are the documents capturing the origin of CMA’s involvement in CHYS.”