East African Cables(EAC), whose shares have been suspended from trading at the Nairobi Securities Exchange(NSE), has delayed publication of its H1 2026 results to not later than 31 October.
The cable dealer cites its ongoing administration and a recently completed share purchase transaction.
In May this year, EAC signed a deal with Cable Experts to acquire the entire 68.37% controlling stake held by TransCentury PLC through its wholly-owned subsidiary, Cable Holdings (Kenya) Limited.
EAC says the transaction is intended to address its debt structure and improve financial viability. Its shares have been suspended from NSE trading since June 2025.
How the East African Cables ship sunk
Trouble for the listed cable firm begun when its parent TransCentury borrowed heavily between 2008 and 2013 to fund several big ticket projects. These included revival of the dilapidated metre-gauge Kenya-Uganda Railway Line as well as the Civicon, Tanelec projects in Tanzania.
This Railway investment backfired, leaving TransCentury with huge US Dollar denominated loans. TransCentury then moved to cross-guarantee the debts, using the East African Cables as security. The debt composition was Equity Bank loan KSh 4.8billion, East African Cables KSh 2.2 billion and TransCentury KSh2.6 billion, secured by all TransCentury/East African Cables assets worth KSh 11 billion.
After numerous debt restructuring efforts, East African Cables defaulted on a KSh 1.7 billion bond after paying KSh 669 billion and TransCentury pumping US$ 13.7 million. A weakening Kenya Shilling against the US dollar pushed up interest payments, increasing the outstanding loan balance.
Equity Bank then moved and took over all securities and refused to release working capital to East African Cables. East African Cables factory was grounded after it could not purchase copper-the main raw material, that is priced in US dollars.
Revenues stagnated while finance costs rose, eating into the firm’s gross profits. The balance sheet became insolvent as current liabilities overtook current assets.
After the auditor raised the red flag, Equity Bank moved in and appointed a receiver. East African Cables got an injunction that lasted for two years before PwC took over. The Capital Markets Authority then suspended the cable firm from trading at the Nairobi Securities Exchange(NSE).
While losses at the Cable firm narrowed in H1 2025, the debt load kept on getting heavier. Then in May this year, Cable Experts Ltd agreed to buy TransCentury’s 68.37% stake (173M shares) and retire Equity Bank debt.
Leave a comment