Equity Bank now finds itself at a critical crossroads—not just in a legal dispute, but in a moral and economic test of leadership.
TransCentury PLC and East African Cables, two companies once brimming with regional promise, are in distress.
Ksh 4 billion for TransCentury and Ksh 1.5 billion for East African Cables in outstanding loans loom over them, while more than 1,500 direct jobs and 10,000 indirect livelihoods hang in the balance. But beyond the figures lies a deeper question: should Equity act as an undertaker, sealing their fate, or as a physician, diagnosing the illness and reviving the patient?
Equity certainly has the legal mandate to act. Justice Francis Gikonyo ruled that court extensions had been granted, and the bank has the right to recover its funds. But as the legal process unfolds, we must confront the larger economic and human consequences.
Liquidating TransCentury is not just the closure of a struggling firm—it’s a blow to Kenya’s industrial ecosystem, a stain on the Nairobi Securities Exchange (NSE), and a setback to President William Ruto’s vision of economic transformation.
President Ruto has repeatedly emphasised the importance of growing the NSE, democratizing capital, and attracting investment. Letting a listed firm collapse sends a chilling message: if you falter, you’re on your own. Your employees will be discarded. Your investors are wiped out. Your recovery efforts were ignored.
Yet, the story of TransCentury is not one of defeat—it is one of an ongoing fightback. The company has already paid over KES 1.2 billion towards its loan obligations. In 2024, it recorded a remarkable turnaround, posting a profit of KES 580 million.
Moreover, TransCentury has sold off strategic property assets as part of its plan to clear its debt burden. These are not the actions of a company that is “unwilling or unable” to repay—they are the marks of a company struggling to get back on its feet.
Equity Bank, East Africa’s financial titan, has an opportunity to rewrite the narrative. Under the leadership of Dr. James Mwangi, Equity has grown into the region’s most influential bank, lauded for its commitment to financial inclusion, innovation, and resilience. If any institution has the muscle, foresight, and moral authority to lead a recovery effort, it is Equity.
Across the world, banks have stepped up to rescue companies in distress. In the 2008 financial crisis, American giants like JPMorgan, Citibank, and Bank of America led corporate rescues.
In India, over 300 firms have been revived through strategic restructuring under its Insolvency and Bankruptcy Code. South African banks have taken similar paths with struggling manufacturers. These interventions weren’t acts of mercy—they were strategic decisions rooted in long-term thinking.
TransCentury has struggled, yes—but it still holds valuable infrastructure assets across the region, a legacy in manufacturing, and meaningful brand equity. These are not hollow shells; they are distressed yet salvageable. Wounded giants need a scalpel, not a sledgehammer.
Equity can become the lifeline that turns this into a revival story. It can explore a Company Voluntary Arrangement (CVA) under the Insolvency Act, working with the courts and regulators to create a debt-restructuring framework. It can convert part of the loan into equity to influence board decisions and fast-track the onboarding of new strategic investors. It can do what it has always done best—lead.
This is not charity—it is smart, visionary banking. Protecting TransCentury’s listing on the NSE upholds investor confidence in the market. Saving over 1,500 jobs maintains economic stability. Supporting shareholders ensures continuity. And showing that banks can support struggling firms sets a precedent for future financial stability in Kenya.
This is a defining moment for Equity Bank—not as a punitive enforcer of debt, but as a visionary steward of economic renewal. His legacy already reflects excellence in banking, but this situation presents a unique opportunity to influence how distressed public companies are treated in Kenya.
Equity should not be remembered as the bank that pulled the plug on a breathing company. It should be remembered as the bank that showed compassion and capacity, walked with its client, and believed in the possibility of redemption.
There is still time to change course. The court process can continue while a parallel path of restructuring is pursued. Legal rights need not conflict with economic revival.
Because in the end, the cost of liquidation is far greater than the debt owed. It is the cost of lost jobs, shuttered dreams, disillusioned investors, and a weakened securities exchange.
Let this be the moment. Equity turned the page—not just for TransCentury, but for Kenya’s private sector ethos. Let us show the world that in this country, we do not throw away companies that stumble—we help them rise.
Let history write that when TransCentury was on its knees, Equity reached out—not to bury it, but to help it stand again.
