COURT DECLINES TO RESTRAIN EQUITY BANK FROM TAKING OVER TRANSCENTURY AND EAST AFRICAN CABLES
High Cout Judge Justice Francis Gikonyo has, this morning, declined to issue orders stopping the receivers and managers of Transcentury PLC and the administrators of East African Cables from taking control of these companies.
Transcentury PLC and East African Cables had moved to court yet again seeking a further extension of 120 days to pay the debt owed to Equity Bank. The orders had been sought in the long running dispute between the Transcentury Group and Equity Bank over the failure to pay the debt owed to the Bank. The Transcentury Group had approached the court seeking relief to stop the Bank from taking steps to recover the debt. Neither Transcentury PLC nor East African Cables have denied owing Equity Bank. They have enjoyed court orders stopping the recovery process for 2 years to allow them to find an investor and to sell their subsidiary, East African Cables Tanzania Limited.
On 18th October 2024, the High Court had given the companies 120 days to pay the debt. On 20th March 2025, the period to pay the debt was extended for a further 90 days. The extensions given by the court lapsed on 18th June 2025.
On 19th June 2025, the receivers and managers of Transcentury PLC and the administrators of East African Cables moved back in and took control of the companies. They first took over on 16th June 2023 before being restrained by court orders made on 19th June 2023. Transcentury PLC and East African Cables filed applications seeking a third extension and had asked the judge to give interim relief stopping the receivers and the administrators from taking control of the companies.
Equity Bank has challenged the court’s jurisdiction to hear the new applications as the Transcentury Group has already received 2 extensions from the court. Justice Gikonyo indicated that he cannot issue the orders sought by Transcentury group as his jurisdiction to hear the matters has been challenged. The matter will be back in court on 24th July 2025.
In the meantime, Muniu Thoithi and George Weru of PwC are acting as receivers of Transcentury PLC and administrators of East African Cables. The 2 companies owe Equity Bank over KES 7 billion.
At paragraph 47 of the ruling of March 20 the judge stated;
“Accordingly, in the interest of justice, there is sufficient reason to review the time for repayment of the debt and appointment of the receivers. Nevertheless, any such extension should be given once to avoid prejudice to the defendants or unwanted habit by the applicant. Accordingly, the time for repaying the entire debt is extended with another 90 days from today”
Based on the judge’s own words he made it clear that the extension should only be given once.
Key Facts:
• No repayments have been made by TransCentury/EAC to Equity Bank to reduce the outstanding loan amounts, despite:
o Benefiting from injunction orders since June 2023.
o Admitting to owing the bank and failing to service the loans as per contractual agreements.
o Being granted a final extension in March 2025.
•Legal experts argue that the companies’ recent court applications are unlikely to succeed, as the law does not permit a court to review its own decision on a review application. Though framed differently, the current applications effectively seek a review of the March 20th orders which, according to experts, contained no enforceable relief to be stayed.
• The companies have repeated the same narrative for over two years, claiming they are sourcing investors or buyers.
Outstanding Debt
TransCentury outstanding loan balance Kes. 5,609,592,962.
East Africa Cables outstanding loan balance Kes. 2,337,830,065
Civicon East Africa outstanding loan balance Kes. 2,308,453,708
Total TransCentury Group loan Balances Kes. 10,255,876,735.
