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Supreme Court halts Cytonn property transfers as constitutional issues arise
Photo: allAfrica.com
2026-07-03 19:38   Justice   10

Supreme Court halts Cytonn property transfers as constitutional issues arise

The Supreme Court of Kenya has issued conservatory orders to suspend the transfer of high-value properties linked to Cytonn Investments, pending the resolution of a constitutional appeal.

The ruling, delivered on 3 July 2026, prevents the Official Receiver from enforcing vesting orders that would have allowed the transfer of properties such as Alma, Applewood, and Riverrun.

The court emphasized that maintaining the status quo is in the public interest, as the case raises significant constitutional questions about property rights and fair hearings.

Cytonn's appeal challenges the legality of the Court of Appeal's decision to allow the Official Receiver to take control of the assets, arguing that the vesting orders under the Insolvency Act unlawfully infringe on constitutional protections.

The court acknowledged the complexity of balancing interests between creditors, investors, and bona fide purchasers, stressing the need to preserve assets until the appeal is resolved.The decision marks a procedural victory for Cytonn, which has been embroiled in a prolonged insolvency dispute affecting thousands of stakeholders.The case now proceeds to a substantive hearing to determine whether the vesting orders are constitutionally valid.Until then, the disputed properties remain frozen under the conservatory orders.

Full reading at allAfrica.com

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