This company has said exactly what is doing and people have refused to listen.

Cytonn is all about wealth. They are arbitraging real estate; Real estate in Kenya was having a return of over 25% pa. Arbitrage for the high yield investors was bring your investment and get 15-18%. Cytonn spread on the "producing" real estate would be 8-10% pa. This was and still is a scalable investment strategy post Rona when there is more liquidity.

All the other financial products cytonn has the process and systems in place to have products with better returns than their competitors. It is not magic or witchcraft it is business. They have clear client intake process and systems, they use technology smartly, using CRM etc.

This madness of rumours without understanding a business is stupid. They can make great returns on insurance and imagine what they can do with money? This is a very very smart play.

These companies really need to see what Cytonn is doing and learn as quickly as possible because peoples cakes are about to be eaten.

This is the warren buffet playbook with Geico and a company. They can buy another insurance company and professionalize it the same way they did for their other sector.

Watch this company!!!

Great question.
I don't know what happened. However let's look at the business behind the colleges

1. Education sector is profitable and they can see it and several hedge funds have been buying up schools in Kenya.
2. Cytonn response is let's set up a education business. Their logic is they also need staff from Fundi for their construction business, to teachers for their nusery schools. etc. This business will be funded by students who will pay cytonn to acquire skills and knowledge. Cytonn will be able to assess students and this can be a funnel of good staff for their businesses.
3. If this college is profitable we can package the education business as a high yield product where you buy into this scalable business and this will give you good returns and cytonn gets it share for doing the hard work.

Where could it have gone wrong. I have no clue but I there are some sectors and businesses that are hard to crack just with technology and education and health 2 challenging people business that are not easily automated. Maybe they didn't have time? Maybe they did have focus? Maybe thats why paul kimani was fired. Who knows but I get the logic of the college.

You win some big and hopefully you lose alot small!

Insurance business in a country of "hustlers" and loose regulation is going to be very difficult for anyone because of the following:

(1) Complexity of risk management related to managing unpredictable claims.
(2) Lack of other products that could insure potential outliers, large unplanned claims e.g. stop-loss products.
(3) Significant capital reserve requirements.

However if you want to take advantage of loose regulation, you need cash to fund other businesses and you really have no other ways to get cash then insurance is the perfect industry to enter because of the following:
(1)you can collect premium and use legal loophole not to have to maintain reserve requirement
(2) you can use fine prints and legal ways not pay claims when they become due
(3) you can downright refuse to pick calls from customers when they want to make claims.

You can basically market the products aggressively and it might take years in a country like Kenya for the law to catch-up with you or for customers to figure you out and stop paying premiums to you, by then, you'll have all the cash you need to rescue other parts of your businesses that needed cash in the first place.

Entering insurance business can actually save Cytonn, brilliant idea from my Wharton Business School friend!

Insurance can be a perfect Ponzi scheme!

There is a meeting on 26th for truthseekers and bsers to put in their 2 cents