The Unfortunate Fate Of TransCentury Is A Big Blow To Kenya’s Economy

On Friday, the High Court of Kenya declined to stop Equity Bank from taking over TransCentury PLC over a KSh2.2 billion loan default by its subsidiary, East African Cables. This development didn’t just shock me—it deeply disappointed me. And I will explain why this isn’t just a legal decision, but a potentially damaging blow to Kenya’s economic ambitions, job security, and investor confidence.

Let’s start with the facts.

Just hours before the ruling, TransCentury had issued a public statement that carried a sense of hope and reassurance. The company affirmed that it had made significant progress in its debt restructuring plan, including negotiations with potential investors to settle the outstanding loan. According to TransCentury, the restructuring was at its final stages—an agreement seemed not just likely, but imminent.“We are confident that the progress made—which is at the tail end—will yield a resolution that’s in the interests of our shareholders, financiers, employees, partners, and the broader market,” said TransCentury.

This statement was not made lightly. In fact, court papers confirm that over KSh1 billion of the debt had already been paid, with the remainder part of an ongoing, good-faith negotiation process. The company has not refused to honour its obligations. Instead, it has only asked for space and partnership to finalize an agreement that respects all stakeholders involved.

This is not just a matter of boardroom tension or corporate restructuring. At stake are 1,500 direct jobs, and an ecosystem of over 10,000 indirectly employed individuals who depend on TransCentury and East African Cables. That’s more than 11,500 livelihoods on the line in a country where unemployment is already painfully high. These numbers represent technicians, engineers, factory workers, transporters, suppliers, contractors, and their families—people whose daily bread now hangs in the balance.

More broadly, this action goes against President William Ruto’s publicly stated vision of revitalizing Kenya’s capital markets. The President has been clear about wanting to attract more companies to list on the Nairobi Securities Exchange (NSE). TransCentury is already a listed company, and instead of seeing government and corporate Kenya work together to protect such assets and give them room to recover, we are witnessing what appears to be a hostile takeover by one of the country’s largest financial institutions.

This kind of corporate aggression sends the wrong message to both local and international investors.

It says, “Even if you’re listed, even if you’ve paid more than half your debt, even if you’re finalizing a solution, we won’t wait.” It creates a perception that financial institutions in Kenya lack the patience and flexibility needed to support long-term economic resilience. And in the absence of government protection for such companies, it raises doubts about whether Nairobi can truly evolve into the financial hub it aspires to be.

Let’s also be honest about something else: corporate debt restructuring is not a scandal, nor is it unique. It is a common, globally accepted business process—especially in the wake of COVID-19, which disrupted supply chains, delayed projects, and dried up financing. The government, financial sector, and regulators should be working to support companies in recovery, not accelerating their collapse. Equity Group has long marketed itself as a bank with a heart for development. Now is the time for that slogan to be put to the test.

From the court papers, the company had already identified new investors ready to come on board. The sticking point? Time. Time to complete paperwork. Time to finalize negotiations. Time to fulfill what remains of their obligation in a way that safeguards employees, shareholders, and creditors alike.

But Friday’s ruling gives Equity Bank a green light to seize control, potentially stripping shareholders of value, workers of income, and the NSE of a key player.

There is a wider policy issue here that cannot be ignored. Kenya desperately needs to demonstrate that it can grow its local champions—companies that are born and built here, create jobs here, pay taxes here, and go on to become regional powerhouses. TransCentury has been one such company. It may have stumbled, like many have during tough economic cycles, but it hasn’t fallen. And it certainly hasn’t given up.

This moment required patience and partnership, not litigation and liquidation.

In a climate where the government is campaigning for SMEs to grow and for local businesses to list on the NSE, this decision undermines both messages. It shows that being publicly listed offers little protection. That aggressive debt collection will take precedence over restructuring efforts. And that even companies trying to do the right thing may be left exposed.

What is happening to TransCentury should concern all of us—not just the investors or the affected employees. Because it’s a sign of what can happen to any company that dares to build big, employs thousands, and dares to believe in Kenyan growth.

As we move forward, I urge policymakers, regulators, financial institutions, and even Equity Bank itself to reconsider the wider impact of their decisions. Let’s find a way that protects the financial system and protects jobs. Let’s choose the path of economic healing over hostility. Let’s build, not burn.

Otherwise, the next time a Kenyan company thinks of expanding, or a new investor considers listing at the NSE, they might just remember TransCentury—and walk away.

Read Also: TransCentury PLC Moves Closer To Resolving Equity Bank Standoff Through Court-Supervised Debt Restructuring