The Capital Markets Authority (CMA) has indefinitely suspended trading in the shares of TransCentury Limited (TCL) and its subsidiary, East African Cables, to protect investors.
This follows Equity Bank’s seizure of both companies last week over an unpaid debt of KSh 4.74 billion.
“Notice is hereby given of the suspension in trading of TransCentury PLC and East African Cables PLC shares, following the placement of TransCentury PLC under receivership and East African Cables PLC under administration, with the appointment of George Weru and Muniu Thoithi of PricewaterhouseCoopers Limited as joint receivers and managers, effective 20 June 2025,” the CMA stated in a notice released through the Nairobi Securities Exchange.
The CMA issued the suspension under Regulation 73(2)(a) of the Capital Markets (Public Offers, Listings, and Disclosures) Regulations, 2023.
“The suspension of trading in the companies’ shares will remain in force indefinitely, effective from 23 June 2025,” it added. “All shareholders, investors, and the general public are advised to take note of the suspension.”
Equity Bank placed TransCentury under receivership and East African Cables under administration after court orders temporarily halting the process expired.
George Weru and Muniu Thoithi of PricewaterhouseCoopers Limited, initially appointed on 16 June 2023, resumed their roles as joint receivers and managers for TransCentury and joint administrators for East African Cables on 19 June 2025, following the lapse of a 90-day court order extension.
East African Cables is under administration, a legal process aimed at salvaging the company or achieving better outcomes for creditors than liquidation. Both companies are now managed by PwC-appointed officials, with all communications, claims, and transactions directed through PwC channels.
TransCentury reported its first annual net profit since 2013 for the year ending December 2024, marking a financial turnaround amid ongoing legal disputes with Equity Bank over its subsidiary, East African Cables.
TransCentury has been the best-performing stock on the Nairobi Securities Exchange (NSE) in 2025, with a year-to-date gain of 187%.
Despite this progress, Equity Bank seized East African Cables, with the matter scheduled for a court mention on 24 July 2025.
TransCentury recorded a net profit of KSh 580 million for 2024, driven by a revenue increase to KSh 6.7 billion, a 27.1% rise in gross profit to KSh 2.34 billion, and an operating profit of KSh 714.5 million, compared to a KSh 317.4 million loss in 2023. Foreign exchange gains also rose by 19.4% to KSh 1.23 billion.
A prolonged dispute with Equity Bank overshadows the financial progress. Court documents reveal TransCentury’s allegations that the bank “took all TC and EAC security worth approximately KSh 11 billion and reneged on issuing working capital, further strangling the business.”
TransCentury also accused the bank of “continuously frustrating all efforts by the Group to raise funds from other interested financiers,” disrupting potential funding transactions.
In June 2023, Equity Bank moved to appoint receivers and administrators for TransCentury and East African Cables.
Both companies filed applications in the High Court of Kenya at Nairobi (Commercial and Tax Division, Civil Suit No. E276 of 2023 for TransCentury and E277 of 2023 for East African Cables) seeking injunctions against these appointments.
Court documents indicate that East African Cables paid over KSh 669,576,299 to Equity Bank to reduce the debt since the facility’s disbursement, with additional payments made after the suit was filed. TransCentury reported paying over US$13,740,892 towards the debt.
The companies argued that the bank’s actions were “unlawful” and “disregarded mandatory procedures,” warning that such appointments would “completely cripple” their operations.
They also highlighted failed negotiations for debt financing, including a US$15 million term sheet from Norfund, allegedly disrupted by the bank’s actions.
Equity Bank, through its manager of legal services, Kariuki King’ori, argued in court that the companies failed to meet payment obligations on credit facilities, prompting demands for repayment.
On 18 October 2024, Justice A. Mabeya partially granted temporary injunctions in both cases, restraining Equity Bank from appointing administrators or receivers for 120 days. The court noted that TransCentury and East African Cables demonstrated good faith in repayments and required time to reorganise.
Despite the court’s ruling, TransCentury claims Equity Bank has “continuously frustrated” its fundraising efforts. Court documents highlight:
- A US$15 million term sheet from Norfund in June 2023 collapsed after the bank appointed receivers and administrators.
- A 2024 transaction to sell East African Cables Tanzania, intended to reduce debt by over KSh 500 million, is now at risk.
- A June 2025 funding confirmation from TLG Capital was also jeopardised by ongoing disruptions.
- The ongoing sale of property valued at over KSh 400 million, fully appraised by the bank.
TransCentury CEO Njiinu described the bank’s actions as “quite disruptive to the business,” noting that “every time the business is about to close a transaction, the bank scuttles the efforts.” Court documents suggest the bank’s actions reflect “bad faith.”
East African Cables is a key entity in TransCentury’s portfolio, alongside East African Cables Tanzania, Tanelec, and Transaero. Its strategic importance is underscored by its legal battles with Equity Bank, which sought to appoint receivers and administrators over both companies.
Analysts warn that Equity Bank’s actions, which TransCentury claims have “frustrated all efforts to raise funds from other financiers,” could deter foreign direct investment in Kenya. The collapse of the Norfund deal in June 2023 and the potential loss of TLG Capital funding in June 2025 illustrate these risks.
The High Court recognised that disrupting ongoing financing negotiations could jeopardise the companies’ efforts to stabilise operations. Such actions by a major lender may create a challenging environment for distressed companies seeking to restructure and attract foreign capital.
Equity Bank’s pursuit of receivership poses a significant risk to the Nairobi Securities Exchange.
The court stated that “receivership ought to be the last resort” and that appointing receivers could “spell a death knell” for the companies, potentially leading to collapse, layoffs, and a trading halt.
The delisting of TransCentury and East African Cables from the NSE would represent a major setback for the exchange.
