The Capital Markets Authority (CMA) has suspended trading in the shares of investment firm TransCentury Limited (TCL) and its subsidiary East African Cables indefinitely, after the two companies were seized by Equity Bank last week over unpaid debt of Sh4.74 billion.
The suspension, which follows the placement of TransCentury under receivership, and East African Cables under administration, will run indefinitely as per a notice published by the Nairobi Securities Exchange (NSE).
Equity Bank moved in on TCL and its subsidiary last week, after the expiry of a 90-day High Court window barring its appointed receiver managers from taking control of operations of the two companies.
The bank had issued a demand notice for the debt in June 2023 and later moved to take control of the companies, after declining a request to write off the dues, before the court order delayed the receivership and administration.
“Notice is hereby given of the suspension in trading of TransCentury and East African Cables shares following the placement of TransCentury under receivership and East African Cables under administration and the appointment of George Weru and Muniu Thoithi of PricewaterhouseCoopers Limited as joint receivers and managers effective June 20, 2025,” said the NSE in the notice on Monday.
“The suspension from trading the shares will remain in force indefinitely, with effect from June 23, 2025."
Under a receivership arrangement that was provided for under the Companies Act, a creditor’s appointed manager is charged with disposing of the assets to which the debt is charged, effectively liquidating the company to recover the loans on behalf of the creditor who initiated the recovery.
The enactment of the Insolvency Act in September 2015, however introduced administration as a means of resolving insolvency. Under this arrangement, the appointed administrator prioritises restructuring and restoration of the company, in order to make it viable and settle the dues owed to all creditors.
If the turnaround fails, the indebted firm is liquidated and the proceeds used to repay creditors based on the seniority of their claims.
The placement of TCL under receivership as opposed to administration thus indicates that its debts were contracted before the Insolvency Act was put in place, and are therefore treated under receivership laws of the Companies Act.
The suspension now locks in the two companies’ shareholders at the NSE into uncertainty. Ahead of the suspension of trading in the companies, the share prices had fallen in their last trading session on Friday, pointing to investor jitters about their fate.
TransCentury shed 6.7 percent to close the day at Sh1.12 per share, while East African Cables was down 1.2 percent to Sh1.71 per share. TransCentury saw 493,600 shares change hands on the day, an increase from 14,900 shares in the previous session, while East African Cables moved 74,400 shares.
As of Friday, TCL’s market capitalisation stood at Sh1.26 billion, while EastAfrican Cables had a valuation of Sh432.8 million.
