Nairobi headquartered investment firm Cytonn used deceptive marketing in its adverts to woo investors, Business Daily reports.
Promising annual returns of up to 18 percent with minimal risk, Cytonn drew thousands of middle-class and wealthy investors from whom it raised billions of shillings.
The company set up two vehicles whose main role was to collect cash from investors, with the money to be deployed in the real estate market.
The largest, Cytonn High Yield Solutions LLP (CHYS), managed to raise Sh11.1 billion from 3,116 debt investors.
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They included Johnson Masinde and Daniel Nyakundi who pumped in an aggregate of Sh34 million.
This is not the first Kenyan company with a real estate offering that has done clients this way.
The list is big from Suraya, Urithii, Banda Homes, Lesedi and others.
At its heights, Cytonn offered CHYS investors very high returns.
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