Cytonn Investment Management PLC has issued a statement to its creditors and investors following the Business Registration Service (BRS) announcement on the disposal of properties belonging to Cytonn High Yield Solutions LLP (CHYS) and Cytonn Real Estate Project Notes LLP (CPN).
The move aims to recover an estimated Ksh 11 billion owed to over 3,000 investors whose savings were locked in the firm’s high-interest products.
Both entities were placed under liquidation following systemic defaults on financial obligations to their clients.
Cytonn Reassures Creditors, Investors State Asset Sale Not Final
In a statement issued on Tuesday, March 17, Cytonn reassured its creditors and investors that the advertised asset disposal is not final, remains subject to court oversight, and will be challenged through appropriate legal action.
“We wish to assure all creditors and investors that the current developments form part of an ongoing legal and court supervised insolvency process. They do not amount to a final determination of all rights, interests, or claims relating to the affected assets,” read part of the statement.
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Cytonn Decries Auction Move, Says Legal Steps Underway to Protect Assets
Cytonn said the actions contravene existing court directions and indicated that it will take appropriate legal action.
The firm also cited a Court of Appeal judgment dated November 21, 2025, in Civil Appeal No. E091 of 2024 (consolidated with Civil Appeal Nos. E092, E093 and E094 of 2024), which stated that it remained open for the special purpose vehicles (SPVs) to present material before the liquidator to demonstrate that their assets were not linked to funds collected by CHYS and CPN, and to seek the release of those assets.
Cytonn said it has written to the Official Receiver and submitted material to demonstrate that funds invested in the relevant special purpose vehicles (SPVs) are not linked to funds collected by CHYS and CPN from the public.
The firm noted that this process is already underway and remains a key legal avenue for the protection and possible release of clearly distinguishable assets.
It also clarified that preservation orders issued on January 6, 2023, by Justice Alfred Mabeya remain in force and have not been set aside, meaning the legal status of the preserved assets is still subject to existing court orders and due process.
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Cytonn further pointed to Insolvency Petition No. E063 of 2021, where the court, through Justice Freda Mugambi, on January 30, 2026, granted the Official Receiver 90 days to complete the verification exercise and respond to proofs of debt. The firm said the process is yet to be concluded.
The company expressed concern that steps are being taken before the verification exercise is finalised, warning that this could create confusion and anxiety among creditors and investors.
It added that it expects the Official Receiver to fully comply with the court’s directions and conclude the process as ordered.
The firm reassured stakeholders that legal safeguards remain in place, with key issues still pending and subject to court oversight and due process.
Cytonn High Yield Solutions and Cytonn Real Estate Project Notes collected billions from investors in 2020, just after the COVID-19 pandemic hit the Kenyan shores.
With the pandemic affecting construction work, Cytonn could not meet its financial obligations, forcing aggrieved investors to first run to the Capital Markets Authority, then to the High Court.
It was then placed in liquidation on January 6, 2023, after a fierce legal battle that lasted three years.
Later, in 2025, Cytonn High Yield Fund was placed under administration, with Tom Ouma Mungai, an insolvency practitioner at Nairobi Forensics LLP, appointed as the administrator of several entities connected to the Fund.
