Court dismisses appeals on Cytonn Investments management ruling
The Nairobi Court of Appeal has dismissed consolidated appeals challenging the ruling of a Nairobi High Court on the application for extension of the administration of Cytonn High Yields Solution (also referred to as CHYS) and Cytonn Real Estate Project Notes (also referred to as CPN).
According to court papers, Cytonn Investments Management PLC (also referred to as CIMP) and Edwin Harold Dayan Dande were the promoters of the 2nd respondent (Cytonn High Yields Solution and Cytonn Real Estate Project Notes).
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The judgement also reveals that Cytonn and Dayan filed Petition Nos. E063 and E064 of 2021, seeking administrative orders in respect of CHYS and CPN following the inability of the two companies to meet their financial obligations.
Notably, it states that after the issuance of the administration order, the administrator found that the companies could not be rescued as going concerns because they had no credible funding models; hence, there was no likelihood of turning them around.
Consequently, the administrator then proceeded and recommended an orderly wind-down, which would include appointing a fund manager and fund administrator as well as a trustee.
Two applications were then filed by the companies’ respective creditors’ committees and the administrator seeking the termination and extension of the administration, respectively.
In his ruling on January 6, 2023, Judge Alfred Mabeya dismissed the application for extension of the administration but terminated the administration of the companies and placed them under liquidation by the official receiver (listed as 1st respondent).
Further, he directed the administrator to, forthwith, surrender to the official receiver all the properties and their belongings as well as the documents relating to the administration.
In addition, he also ordered that the properties set out in the motion dated May 19, 2022, be preserved until the liquidation is concluded. The said properties and their respective special purpose vehicles were set out as Cytonn Integrated Project LLP.
Not satisfied, the appellants Valerina Jiwa and 289 others (first appellants), Birguy Lamizana and 81 others (second appellants), and Benedicta Mukulu Musembi and 24 others (third appellants) moved to the court of appeal, challenging Justice Mabeya’s ruling.
However, on Friday, November 21, 2025, the appellate court judges Patrick Kiage, Jamila Mohammed and George Odunga upheld Mabeya’s ruling.
“Having considered these appeals, we find no merit in them, and consequently, we dismiss them with costs to the 1st respondent (official receiver) and the creditors’ committee,” the judges ruled.
