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{
    "id": 1186229,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1186229/?format=api",
    "text_counter": 35,
    "type": "speech",
    "speaker_name": "Alego Usonga, ODM",
    "speaker_title": "Hon. Samuel Atandi",
    "speaker": null,
    "content": "THAT, investors who opted for the off-plan arrangements started making their payments in 2017, and continued making regular payments as and when required. THAT, despite the very little activity on site, Cytonn Investment Limited, through their representatives, kept explaining to investors verbally that they were finalising other developments. THAT, investors made an initial instalment of 10 per cent of the sale value plus the booking fee of Ksh50,000. THAT, by the year 2018, some investors who were paying in instalments had paid each in excess of Ksh3.9million, during which time it seemed that the company had started experiencing internal financial problems since no construction was ever started. THAT, those who feared for their investments and started asking for refunds were told they would incur a mandatory 10 per cent loss on their deposits. THAT, in September 2019, when many investors began seeking a refund, the company announced that it would put the money in its substitute platform, Cytonn High Yield Solutions, for one year to earn interest at 18 per cent and then start refunding. THAT, in 2020, the company began blaming the COVID-19 pandemic interruptions and promised to refund the investors in 2021, during which time they kept sending statements to show that interest was being earned. THAT, later, an administrator was appointed and the company continued to experience financial difficulties. To date, nothing has come to fruition with regard to investors’ money, nor has the Ridge Project taken off. THAT, notwithstanding this debacle, the company has ostensibly kept its posts alive on social media platforms on investment analysis to dupe the investors and unsuspecting Kenyans that it is liquid and in an optimum operational capacity. The company has been trying to sell off some of its properties in vain and might thus dissolve with depositors’ money. THAT, efforts to ensure the company honours the agreement with the investors have not been productive despite further engagements with the Capital Markets Authority (CMA). THAT, the matter in respect of which this Petition is made is not pending before any court of law or any constitutional body. THEREFORE, your humble Petitioners pray that the National Assembly, through the Public Petitions Committee— (i) Engages Cytonn Investment Limited and its partners to clarify how they intend to fulfil the agreement with the investors of their formation, Ridge Development Project. (ii) Holds the Chief Executive Officer (CEO) of Cytonn as responsible for mismanagement and secures the timely refund of investors’ money. (iii) Engages the CMA to establish how they intend to operationalise the Investor Compensation Fund to grant compensation to investors who suffer pecuniary loss resulting from the failure of a licensed broker/dealer to meet his contractual obligations as stipulated in Section 18(1) of the CMA Act. (iv) Makes any other suitable recommendation it deems fit in addressing the issues in the Petition. And your Petitioners will ever pray. Thank you, Hon. Speaker."
}