The plaintiff, Kenneth Maweu Kasinga-who resides in Nakuru, says in the suit that on 8th October 2019, he invested KSh 3 Million in the Cytonn High Yield Solutions(CHYS), a financial product that was to attract an interest of 19% per annum until its maturity on or about 7th September 2020.
On 22nd June 2020, Cytonn gave Kasinga the option of either extending his investment by 12 months after the date of maturity or enter a standstill agreement where his funds would be extended for an additional two years after the date of maturity. These options were to be chosen within 30 days.
On June 30th, before the expiry of the 30 days, Cytonn unilaterally extended maturity of Kasinga’s investment for another 12 months and reduced the periodic interest payable by half to be paid within 5-10 working days while the remaining half was to be capitalized into his principal.
On 2nd July, Kasinga wrote to Cytonn stating that he was not agreeable to the unilateral decisions and that we would like to redeem his investment at the end of the agreed period of 12 months.
Cytonn, in its response to this letter, indicated that it could not seek the views of 3,000 other investors on payment of investments upon maturity.
In matters before the court, the plaintiff says Cytonn changed the contract from a public to a private offer, to escape scrutiny from the Capital Markets Authority (CMA).
Kenneth Kasinga, through Konosi and Company Advocates, in a Civil Case No 33 before the High Court in Nakuru. as the plaintiff has sued Cytonn. Capital Markets Authority(CMA) is the second defendant in this case.
The plaintiff says the product he was given was a private offer while he knew it to be a public offer.
He is accusing Cytonn of failing to make him a partner as was promised, not following the investment agreement such as payment within three working days upon maturity of the investment.