Woman Wins Ksh41 Million Case Against Cytonn Investments

Margaret Mary Njuguna, a retiree, has won a Ksh41.4 million case against Cytonn Investments after the High Court upheld an arbitral award issued in her favor.

The Financial Dispute

Njuguna had invested her life savings in one of Cytonn’s products. Dissatisfied with the investment outcome, she pursued arbitration, which awarded her Ksh41.4 million plus compound interest from October 1, 2021.

The award, issued on January 31, 2023, by arbitrator Mercy Nduta Mwangi, was challenged by Cytonn in the High Court.

Cytonn’s Challenge Dismissed

Cytonn filed an application to set aside the award (Misc. Arb. No. 030 of 2023) on May 2, 2023. They argued the arbitration lacked a valid agreement, claimed arbitrator bias, and cited conflict with Kenya’s public policy.

However, Justice Mugambi struck out the application, ruling it was filed outside the 90-day period stipulated in Section 35(3) of the Arbitration Act.

“The application was filed out of time. The court, therefore, had no jurisdiction to entertain it,” Justice Mugambi ruled.

The court then granted Njuguna’s application (Misc. Arb. No. E018 of 2023) to enforce the award, making it a formal judgment of the court.

Cytonn Appeals the Decision

Cytonn has since filed a notice of appeal and is seeking a stay of execution of the award pending determination by the Court of Appeal. They argue the High Court erred in its interpretation of statutory timelines.

Njuguna’s Reaction

For Njuguna, the ruling represents a critical step in recovering her investment. She accused Cytonn of using legal delays to avoid paying and expressed hope for closure after years of financial uncertainty.

Her legal team praised the High Court for upholding the rule of law and enforcing the award.

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