The Competition Authority of Kenya (CAK) has approved the acquisition of a 68.37 percent stake in East African Cables Plc by Cable Experts Limited (CEL). This move is part of a plan to revive the troubled cable maker and settle its Sh1.94 billion debt to Equity Bank Kenya. The acquisition, which was agreed upon in May 2026, will see CEL take control of the stake held by Cable Holdings Limited, a wholly owned subsidiary of TransCentury Plc.
East African Cables has been under administration since June 2025 after Equity Bank took control of the company following a loan default and failure to honour a demand notice issued in June 2023. The company, which was incorporated in 1966, manufactures copper and aluminium electrical cables, house wiring, data and fibre-optic solutions, and other consumer electrical accessories. Its manufacturing plants are located in Nairobi, Dar es Salaam, and Eastern DR Congo.
The CAK's approval of the acquisition was notified in an October 2 Gazette notice. According to CEL, the acquisition constitutes a rescue acquisition that enables East African Cables to continue as a going concern, including through the retirement of its existing secured bank indebtedness. This move is expected to revive the company and settle the bank debt that triggered the administration and suspension of its shares.
At the time trading was suspended, East African Cables shares were trading at Sh1.71, valuing the company at about Sh432.8 million. At that price, the 68.37 percent stake comprising 173.07 million shares would be worth about Sh295.9 million. The CAK did not respond to queries on the value of the transaction. CEL plans to revive East African Cables and settle the bank debt.
CEL, which also makes electrical cables and conductors, intends to pursue the resumption of trading in East African Cables shares once the acquisition is completed. The investor is also seeking an exemption from making a mandatory offer for the remaining 31.63 percent stake held by other shareholders. This move is expected to bring new life to the company and its operations.
TransCentury Plc, a Nairobi-based investment holding company, is also under receivership. The company's subsidiary, Cable Holdings Limited, is the current holder of the 68.37 percent stake in East African Cables. The acquisition by CEL is expected to have a positive impact on the industry and the economy as a whole.
The acquisition is a significant development in the Kenyan business landscape, and stakeholders will be watching closely to see how CEL's plans for East African Cables unfold. With the CAK's approval, CEL can now move forward with its plans to revive the company and restore it to its former glory.
Key points
- CAK approves Cable Experts' acquisition of 68.37% stake in East African Cables
- Acquisition aims to revive East African Cables and settle Sh1.94 billion debt to Equity Bank Kenya
- CEL plans to pursue resumption of trading in East African Cables shares once acquisition is completed
