Kenya’s Competition Authority has approved Cable Experts’ acquisition of a 68.37 per cent stake in East African Cables, clearing a key regulatory hurdle in the proposed takeover of the indebted electrical-cable manufacturer.
The approval, published in the Kenya Gazette on October 2, allows Cable Experts to acquire 173.07mn shares in East African Cables held by Cable Holdings (Kenya), a wholly owned subsidiary of TransCentury, the Nairobi-listed infrastructure group that is under receivership.
The transaction was agreed in May and is structured as a rescue deal for East African Cables, which has been under administration since June 2025 after defaulting on its obligations to Equity Bank.
The company has about KSh1.94bn ($15mn) in secured debt, according to reports on the transaction. The proposed investment is intended to enable East African Cables to continue operating while addressing its outstanding obligations to creditors.
The CAK approval comes more than a year after the company entered administration and follows a period of financial pressure that culminated in the suspension of its shares on the Nairobi Securities Exchange.
East African Cables, established in 1966, manufactures copper and aluminium electrical cables and conductors, as well as wiring products, data and fibre-optic solutions and electrical accessories. Its operations extend across Kenya, Tanzania and the Democratic Republic of Congo.
Cable Experts operates in the electrical cable and conductor sector and will become the controlling shareholder if the transaction is completed.
The acquisition does not, however, conclude the regulatory process. Cable Experts is seeking an exemption from making a mandatory offer for the remaining 31.63 per cent of East African Cables held by minority shareholders.
The future of the company’s NSE listing is also unresolved. Cable Experts has indicated that it intends to pursue the resumption of trading in East African Cables shares after completing the acquisition and implementing the proposed restructuring.
East African Cables shares were suspended at KSh1.71. At that price, the company had a market capitalisation of about KSh432.8mn, valuing the 68.37 per cent stake at roughly KSh296mn. The implied value is based on the last traded price and does not represent the consideration agreed between the parties, which has not been disclosed.
For TransCentury, the disposal forms part of efforts to deal with assets and liabilities following its financial difficulties and receivership. For Cable Experts, the transaction provides control of an established regional cable manufacturer while giving the business a potential route out of administration.
The completion of the deal, the treatment of East African Cables’ outstanding debt and the regulatory position of its minority shareholders will determine whether the transaction succeeds in restoring the company to normal operations.
The CAK clearance therefore marks a significant step towards a change in control, but the restructuring of East African Cables remains unfinished.
