NAIROBI, October 22 2015 – Britam has today withdrawn all the five suits filed against Cytonn and its founding directors. As we have always held, these were malicious suits, without merit, and were filed with the sole intention of frustrating the team that left Britam to go for a competing investment and real estate business, Cytonn Investments and Cytonn Real Estate. We have always been confident that the suits were without merit and we are glad to note that all the 5 civil suits against Cytonn and or its founding team have been withdrawn.
As contained in our responding affidavits, Britam has never lost any money as they had claimed in the suits that they have since withdrawn. Instead, this was a commercial dispute that involved 2 aspects:
- On its part, Britam ex-employees left Britam because of their refusal to be part of undermining the interest of investors.
- Britam wanted approximately Kshs. 5 billion of deals that were financed largely by BAAM investors’ money and developed by Acorn Group. Britam and Acorn have agreed to part ways and as part of that, Acorn has given up its interest in developing the disputed deal pipeline and the assets.
Britam have withdrawn the malicious lawsuit, on its part Cytonn will now file for a judgment on costs.
We take note of the press statement by Britam that monies were transferred irregularly, those remain assertions by Britam and the issue of irregular transfers was not heard and or determined by any court and purely remain Britam’s views. We wish to lay out the fact pattern:
- Britam employees disagreed with the board and management of Britam based on Britam’s attempt to undermine the interest of the investing public, and the Cytonn team left to form its own business.
- After leaving based on disagreement, Britam proceeded in October 2014 to file a lawsuit against Acorn Group, Edwin Dande, Elizabeth Nkukuu, Patricia Wanjama and Shiv Arora- the founder members of Cytonn Investments Management Limited.
- After filing the lawsuit, Britam, in December 2014, and through its Lawyer Mr. Fred Ngatia, expressed its interest to settle the matter out of court and gave an option of the possibility to pursue the settlement through arbitration. From the presentations made in court, Britam was willing to pursue arbitration on the civil matters with both the Cytonn and Acorn teams. However, the Cytonn Team rejected Britam’ proposal for this partial arbitration, which involved arbitrating civil matters to the exclusion of contemplated criminal complaint.
- Later in June 2015 and after several court mentions, Britam and Acorn Group, through their lawyers, reported that they were in a process of negotiating an out of court settlement. In good faith, the Cytonn Team allowed these discussions to continue, as we did not have an interest in the commercial dispute and associated discussions between Britam and Acorn.
- On 21stOctober 2015, Britam presented to The High Court of Kenya a draft order of settlement and court orders to be extracted from court (attached).
- On 22 October 2015, Britam withdrew all the lawsuits. As we have always held, these were malicious suits, without merit, and were filed with the sole intention of frustrating the team that left Britam to go form a competing investment and real estate business, Cytonn Investments and Cytonn Real Estate.
- Cytonn supported the withdrawal of the suits, but is pursuing judgment on costs.
- The high court will decide on the process of recording judgment on the costs of the suits in this matter on 18th November 2015 during the next hearing date.
Commenting on the lawsuit, Cytonn Investments CEO, Edwin H. Dande, said, “that this is a vindication that the lawsuits were without merit. The claim of irregular transfers is as malicious as the lawsuits themselves and are solely aimed to try and frustrate a competitor.”
