This archive report was first published on 9 July 2021.
July 9, 2021 - Cytonn Investments is facing a severe debt crisis, with foreign lenders threatening to auction its properties if the firm fails to pay off billions of shillings in loans.
The lenders, including Finnish-owned TT Africa and Taaleri Afrikka Rahasto II KY, have taken the firm to court, seeking orders to deposit their Sh. 5.7 billion dues in court or freeze all Cytonn properties.
According to a report by the Daily Nation, TT Africa had loaned Cytonn Sh. 1.7 billion, which was supposed to be used in the development project dubbed Situ Village. However, by 2018, Cytonn was struggling to keep up with loan repayments, and the debt had grown to Sh. 2.7 billion on account of interest.
Despite restructuring the loan, Cytonn then got another loan from Taaleri Afrikka Rahasto II KY, which was used to construct the Ridge, a mixed-use development in Ridgeways. However, complications emerged after some fund clients made payment demands, and Cytonn used part of the loan to pay them.
The two foreign lenders are now breathing down the firm's neck, seeking orders to compel Cytonn to deposit their Sh. 5.7 billion dues in court or freeze all Cytonn properties, including the Ridge, Situ Village, Cytonn Towers, Applewood, RiverRun, and Taraji Heights.
