Kenya Approves Cable Experts' Rescue Deal for East African Cables

Multiple large spools of industrial cable placed outdoors in front of a closed shutter. Photo: Andrew Durkin/Pexels

The Competition Authority of Kenya (CAK) has approved Cable Experts Limited’s acquisition of a 68.37 percent controlling stake in East African Cables Plc, clearing a key regulatory hurdle in a transaction aimed at reviving the troubled cable manufacturer.

The approval was published in the Kenya Gazette on October 2, 2026. Cable Experts will acquire 173.07 million shares held by Cable Holdings (Kenya) Limited, a subsidiary of TransCentury Plc. The agreement was initially reached in May 2026 with TransCentury’s court-appointed receivers.

The acquisition is structured as a rescue acquisition

East African Cables has been under administration since June 2025 due to financial troubles and a default on obligations to Equity Bank. The deal includes retiring the company’s KSh1.94 billion in secured debt, offering a path to continue operations as a going concern.

Founded in 1966, East African Cables manufactures copper and aluminum electrical cables, house wiring products, and data solutions. It operates in Kenya, Tanzania, and the Democratic Republic of Congo, with distribution across East and Central Africa.

Cable Experts’ Turnaround Plan

Cable Experts, also in the electrical cable business, aims to revive East African Cables and retain its local workforce. The acquisition gives Cable Experts control of an established manufacturer while East African Cables remains under administration and its shares suspended from trading.

At 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 at that price, though the actual transaction value remains undisclosed.

Regulatory Hurdles Remain

While CAK approval is a significant step, the transaction isn’t complete. Cable Experts seeks guidance from the Capital Markets Authority (CMA) on whether it must make a mandatory offer for the remaining 31.63 percent held by minority shareholders.

The buyer has proposed a plan to resume trading in East African Cables shares post-acquisition. Minority shareholders’ next steps depend on regulatory outcomes and the deal’s completion.

For Cable Experts, CAK clearance moves them closer to implementing their turnaround strategy. For East African Cables, the deal offers a potential exit from administration and a return to normal operations after prolonged financial distress.