Equity Bank's Receivership Bid Risks the Delisting of Two Companies

Here's what you need to know to start your week

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Kenyan Wall Street
June 23, 2025

What's Inside this Issue

Inside the Battle of Three Publicly Listed Titans

TransCentury Plc, a listed infrastructure investment group has recently reported its first annual net profit since 2013, marking a turnaround amidst ongoing legal battles with Equity Bank over its subsidiary, East African Cables (EA Cables). 

  • TransCentury, posted a net profit of KSh 580 million for the year ended December 2024, breaking a decade-long streak of losses.

  • The stock has been the best-performing NSE stock in 2025 with +187% year-to-date gain

  • Despite TransCentury's turnaround, Equity Bank has seized EA Cables, which is also listed on the NSE, with the matter slated for a court mention on July 24.​

According to court documents obtained by The Kenyan Wall Street, TransCentury alleges that the bank's actions began when it "took all the TC & EAC security worth approximately KSh. 11bn and reneged on issuing working capital, further strangling the business". In its court filings, TransCentury also accuses the bank of continuously frustrating its efforts to raise funds from other interested financiers, leading to disruptions that scuttled potential funding transactions.

The pursuit of receivership by Equity Bank against both East African Cables and TransCentury Plc, which pits one listed company against two listed ones, carries a significant risk for the Nairobi Securities Exchange (NSE). The court explicitly stated that "receivership ought to be the last resort" and that if receivers were to take control, it "would spell a death knell" for the company, potentially leading to its collapse, layoffs, and a halt in trading activities.

Should these two publicly traded companies be forced into collapse and subsequently delisted from the NSE, it would represent a considerable setback for the exchange.

Catch Up on What You Missed

Commercial banks have elected Paul Russo, CEO of KCB Group, as the new Chairperson of the Kenya Bankers Association (KBA) during the Association’s Annual General Meeting on Friday afternoon.

  • He replaces NCBA Group Managing Director, John Gachora, who served in the role since June 2021.

  • At the same event, Betty Korir, CEO of Credit Bank, was re-elected as Vice Chairperson.

Paul Russo Succeeds John Gachora as Chair of Kenya Bankers Association

Paul Russo has been elected Chairperson of the Kenya Bankers Association, replacing John Gachora, amid loan pricing reform talks with CBK.

kenyanwallstreet.com/paul-russo-succeeds-john-gachora-as-chair-of-kenya-bankers-association

AAR Insurance Enters Motor Cover Market, Eyes Synergy with Medical Plans

AAR Insurance has announced its entry into Kenya’s private motor insurance space, as it targets cross-bundling of services with its flagship medical cover offerings. “We’re committed to doing it right,” […]

kenyanwallstreet.com/aar-insurance-enters-motor-cover-market-eyes-synergy-with-medical-plans

Kenya Cuts Betting Excise Duty to 5% Despite Concerns Over Gambling Surge

On Thursday, Parliament approved an amendment to the Finance Bill 2025 to slash the 15% excise duty on bets to 5%.

kenyanwallstreet.com/kenya-cuts-betting-excise-duty-to-5-despite-concerns-over-gambling-surge

Insights to Kickstart Your Week

The Early Stages of ESG in Ethiopia's Banking Sector

For Ethiopian banks, now is a critical moment to embrace ESG -not to mimic the West, but to carve a context-specific path.

kenyanwallstreet.com/the-early-stages-of-esg-in-ethiopias-banking-sector

Seed Funding Was Supposed to Unlock Scale. It Built a Waiting Room Instead

The seed-to-series funding market is full of what few are buying, despite the increase in growth-stage funds.

kenyanwallstreet.com/seed-funding-was-supposed-to-unlock-scale-it-built-a-waiting-room-instead

Ghana’s Credit Rating Rebounds with Gold Windfall and Fiscal Discipline

Fitch Ratings has upgraded Ghana’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘B-’ from ‘Restricted Default’ (RD).

kenyanwallstreet.com/ghanas-credit-rating-rebounds-with-gold-windfall-and-fiscal-discipline

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Have a great week!