This archive report was first published on 19 August 2021.
Reprieve for Cytonn as Court Dismisses CMA's Name Change Directive ¶
On August 19, 2021, the High Court issued orders setting aside the directives issued by the Capital Markets Authority (CMA) to Cytonn to change its name within 30 days or stop onboarding new clients.
The directive was issued in early August, with CMA's Chief Executive Wyckliffe Shamiah stating that the name change would 'do away with the confusion caused by the similar name used by the unregulated Cytonn Investment Management Ltd.'
However, Cytonn claims that this was an act of economic sabotage from CMA. In a statement, Cytonn CEO Edwin Dande said, 'This was just another act of economic sabotage. CMA is so unlawful, so unprocedural, that they cannot win anything in a fair court.'
Mr. Dande also questioned the motives behind the directive, stating that it was 'really strange' that CMA would issue directives fully knowing they are illegal and won't stand the faintest court scrutiny.
It is worth noting that Cytonn has been at the center of a controversy surrounding unregulated investment products in Kenya. In a series of tweets, Mr. Dande has been explaining Cytonn's position vis-a-vis CMA's directives.
Mr. Dande has also questioned CMA's understanding of capital markets, stating that the agency's CEO, Wyckliffe Shamiah, 'lacks a good grasp of capital markets' and is 'a clear and imminent danger to our capital markets.'
Collectively, the unregulated investment products listed by Mr. Dande manage more funds than the regulated Collective Investments Schemes, raising questions about CMA's understanding of the industry.
