Cytonn CEO Dande Warns Investors Against Superior Homes Kenya Share Purchase Amid Liquidation Controversy

Dande Questions Deloitte Valuation Process, Threatens Legal Action Over Procurement Irregularities

Edwin Dande, the embattled CEO of Cytonn Investments, has issued a stark warning to prospective investors against purchasing shares in Superior Homes Kenya PLC (SHK), citing serious concerns over the valuation process being conducted by global audit firm Deloitte.

In a public notice posted on social media and backed by formal correspondence to Kenya’s Official Receiver, Dande alleges that Deloitte’s appointment to value SHK shares circumvented proper procurement procedures and lacks transparency, potentially undermining the ongoing liquidation process of Cytonn’s assets.

Cytonn’s investment fund had purchased a 12.5 percent stake in Superior Homes Kenya for Sh25 million, making it a significant creditor in the complex web of liquidation proceedings that have entangled the investment firm since 2023.

“Let me start by saying WE HAVE NO ISSUES AT ALL WITH SHK. ITS A GREAT BUSINESS AND WE HAVE RESOLVED ALL OUR ISSUES,” Dande emphasized in his social media post, before detailing his concerns about the valuation process.

The controversy centers around Deloitte’s engagement to conduct a valuation of SHK’s 12.5% shareholding as part of the liquidation proceedings.

Dande contends that this appointment was made without following Kenya’s Public Procurement and Asset Disposal Act (PPDA), which requires transparent, competitive bidding processes for public sector contracts.

In his formal letter to the Official Receiver dated July 10, 2025, Dande outlined several specific concerns about the procurement process:

Lack of Transparency: The creditor argues that the valuation tender should have been conducted through an open tender system, with published tender notices and competitive bids from multiple firms.

No Competitive Bidding: Under Section 89 of the PPDA, tender notices must be issued and competitive bids submitted before any contract is awarded. Dande claims neither he nor other creditors were consulted about the tender process.

Independence Questions: The appointment of what Dande terms a “handpicked valuer” raises questions about the independence and impartiality of the valuation process, crucial for maintaining creditor confidence in the liquidation proceedings.

The High Court ordered the liquidation of Cytonn Real Estate’s investment projects in January 2023, allowing the sale of properties to recover more than Sh14 billion owed to 4,000 investors.

The collapse of Cytonn, once a prominent investment management firm, has become one of Kenya’s most significant financial scandals.

Dande and his partners including Shiva Arora, CEO of Super Homes Kenya, have faced multiple legal challenges, including accusations from former employer Britam Group of siphoning Sh4 billion, highlighting the complex legal battles surrounding the firm’s operations.

The Superior Homes Kenya shareholding represents just one asset in a portfolio that once managed investments worth billions of shillings for thousands of Kenyan investors.

One of Dande’s most pressing concerns relates to the source of funding for the current valuation exercise.

During a creditors’ meeting on October 24, 2024, he was informed that Superior Homes Kenya had contributed Sh25 million toward the valuation process costs.

However, Dande argues that “the source of funding for the current valuation exercise remains unclear.”

This uncertainty has prompted him to demand full disclosure of who is financing the valuation and how much has been paid to Deloitte Limited.

Legal Threats and Deadlines

Dande has given the Official Receiver a three-day ultimatum to provide comprehensive information about the procurement process, including:

• Full details of the procurement method used
• Copies of published tender notices and bidder lists
• The complete evaluation report showing award criteria
• Source of funding details for the valuation
• Confirmation of measures taken to ensure valuer independence
• Terms of reference for the valuation process

“Should the requested information not be provided within THREE DAYS, I shall be compelled to mobilize like-minded creditors and stakeholders to pursue appropriate legal remedies to safeguard the interests of all creditors,” Dande warned.

The dispute highlights broader concerns about transparency in Kenya’s insolvency processes.

Dande argues that the credibility of liquidation proceedings depends on transparent and credible valuations, especially given what he describes as “the original attempt to dispose of these shares to a handpicked buyer.”

The warning comes at a time when Kenya’s insolvency framework faces scrutiny over its ability to protect creditor interests effectively.

The Cytonn liquidation has been particularly challenging, with the CEO previously shedding light on difficulties in the liquidation process.

Superior Homes Kenya, established in 2003, was founded to address the burgeoning need for middle-income housing in Kenya. The company has not yet responded to requests for comment regarding Dande’s allegations about the valuation process.

The real estate developer continues its operations while the valuation controversy unfolds, with recent projects including developments in various parts of Kenya aimed at the middle-class housing market.

The controversy raises important questions about the intersection of private sector liquidations and public procurement law in Kenya.

If Dande follows through on his threat to challenge the process legally, it could set precedents for how asset valuations are conducted in future insolvency proceedings.

The three-day deadline has significant implications not just for the immediate stakeholders but also for the broader investment community watching how Kenya handles one of its most complex financial scandals.

As the situation develops, investors and creditors will be closely monitoring whether the Official Receiver responds to Dande’s demands and how this might affect the timeline and outcome of the Superior Homes Kenya shareholding disposal.

This story will be updated as more information becomes available.