The Competition Authority of Kenya (CAK) has given the green light to Cable Experts Limited's acquisition of a 68.37 percent stake in East African Cables Plc. This development clears a significant regulatory hurdle in a deal aimed at reviving the financially troubled cable manufacturer. The approval was published in the Kenya Gazette on October 2, 2026.
Cable Experts will acquire 173.07 million shares in East African Cables held through Cable Holdings (Kenya) Limited, a wholly owned subsidiary of TransCentury Plc. The transaction, agreed upon in May 2026, involves a share purchase agreement with TransCentury's court-appointed receivers. The deal is structured as a rescue acquisition and includes the retirement of East African Cables' existing secured bank debt.
East African Cables has been under administration since June 2025 due to financial difficulties and a default on its obligations to Equity Bank. The lender took control of the company, and trading in East African Cables shares was suspended on the Nairobi Securities Exchange. The company faces secured debt of about KSh1.94 billion and has been seeking a path to continue operating as a going concern.
East African Cables, incorporated in 1966, manufactures copper and aluminium electrical cables and conductors, as well as house wiring products, data and fibre-optic solutions, and electrical accessories. The company operates in Kenya, Tanzania, and the Democratic Republic of Congo, distributing its products across several East and Central African markets.
Cable Experts, which operates in the electrical cable and conductor business, intends to revive East African Cables and maintain and grow its local workforce as part of the turnaround. The acquisition gives Cable Experts control of one of Kenya's established cable manufacturers at a time when East African Cables remains under administration.
At the time of suspension, East African Cables shares were priced at KSh1.71, giving the company a market value of approximately KSh432.8 million. The 68.37 percent stake would have been worth about KSh295.9 million, although the actual transaction value has not been disclosed. Cable Experts still seeks direction from the Capital Markets Authority (CMA) on whether it can be exempted from making a mandatory offer for the remaining 31.63 percent of East African Cables held by minority shareholders.
The CAK approval brings Cable Experts closer to taking control of East African Cables and implementing its proposed turnaround. For East African Cables, the transaction represents a potential route out of administration and back towards normal operations after a prolonged period of financial distress. Minority shareholders' next steps depend on the completion of the acquisition and the outcome of the regulatory processes surrounding the remaining shares and the company's suspended NSE listing.
Key points
- The Competition Authority of Kenya approves Cable Experts' acquisition of a 68.37 percent stake in East African Cables.
- The acquisition aims to revive East African Cables, which has been under administration since June 2025.
- Cable Experts still requires regulatory clearance from the Capital Markets Authority to complete the transaction.
