PricewaterhouseCoopers (PwC), the controllers of East African Cables Plc (EAC, Kenya), which is currently under administration, have opened a fresh window for possible revival of the cash-strapped firm.
The joint administrators of EAC, Kenya, George Weru and Muniu Thoithi have invited interested investors to explore recapitalising and refinancing the company’s debts to sustainable levels, or acquiring its assets.
“The primary objective of the administration, as set out in the Insolvency Act, is, to the extent possible, to explore the possibility of rescuing the company, maintaining the business as a going concern and achieving a better outcome for the creditors than they would get in a liquidation,” the joint-administrators said.
Administration is a process through which a third party - an administrator - is appointed to take over the affairs of a company in distress to improve its financial situation for the benefit of its creditors or effect a sale of the business to preserve its value.
East African Cables manufacturing plant offices in Nairobi, Kenya.
Photo credit: File | Nation Media Group
The Insolvency Act 2015 provides that a company could be placed under administration by a court, a holder of a floating charge, or the company itself or its directors.
“The transaction process is flexible (with respect to potential transaction structures) and is open to both financial and strategic investors,” the joint-administrators said in a public notice on Friday, July 25, 2025.
“The Administrators are also open to proposals for any other credible /viable transaction structures that achieve the objectives of the administration of the company.”
Deteriorating financial position
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.
In May this year, EAC Kenya suffered a setback after the Court of Appeal declined to grant orders stopping Equity Bank from selling its four properties over the debt.
The four properties identified as LR. No.209/4235, LR. No.209/8176, LR. No. 209/6982/1 and LR. No.209/6982/2 were used as security for loans granted to the cables firm and its parent company, TransCentury.
Equity had served the cable firm with three statutory notices in November last year demanding payment of the entire debt.
East African Cables moved to the Court of Appeal after its challenge to the notices was rejected by the High Court in November last year.
Equity Bank placed the cables firm and its parent company, TransCentury, under receivership after declining a request to write off over Sh2.8 billion debt owed by TransCentury and another Sh2.2 billion owed by the cable firm.
In June, one of the administrators (Muniu Thoithi) took control of the Cable firm, but TransCentury managed to block seizure by Equity Bank, which was enforcing its claim of the loans the two firms had defaulted on.
Equity failed in its bid to take over control of a property associated with TransCentury in Nairobi’s Lavington neighbourhood, after the lender’s appointed receivers were locked out of the premises by the entrance guard.
