Nairobi-based TransCentury Ltd hires KPMG to help settle a $20M loan owed to Equity Bank Kenya. The restructuring plan includes asset sales and out-of-court talks.
Nairobi, Kenya — Embattled TransCentury Ltd., a Nairobi-based infrastructure investment firm, has appointed global consultancy KPMG to develop a turnaround strategy after defaulting on a KSh2.5 billion ($20 million) loan owed to Equity Bank Kenya. The initiative is aimed at averting receivership and stabilizing the company’s operations amid growing financial strain.
📌 Internal link: Equity Bank’s recent regional expansion plans
📌 Internal link: Top loan restructuring strategies in Kenya
🏛️ Court Offers Temporary Relief
On May 2025, the High Court extended an injunction barring Equity Bank’s appointed administrators from taking control of TransCentury and its key subsidiary, East African Cables Plc. Justice Francis Gikonyo granted the companies 90 days to negotiate a debt settlement or face formal administration proceedings.
“We are committed to pursuing an out-of-court resolution that secures value for all stakeholders,” TransCentury noted in a public statement.
📌 Internal link: Inside Kenya’s corporate insolvency law
💼 Multi-Pronged Debt Resolution Strategy
To meet its obligations, TransCentury is pursuing several strategic measures:
- Engaging KPMG to develop a restructuring blueprint.
- Negotiating directly with Equity Bank Kenya for an out-of-court deal.
- Using dividends from subsidiaries such as East African Cables to offset arrears.
- Converting dollar-denominated loans to local currency (Kenyan shillings) to reduce forex risk.
- Selling non-core assets to raise at least KSh1.3 billion ($10 million)—including:
- Properties in Nairobi, Mombasa, and Uganda.
- Machinery and equipment in Nairobi.
📌 Internal link: How TransCentury built its infrastructure portfolio
📌 Internal link: Currency risk in Kenyan corporate lending
📉 Loan Profile and Subsidiary Collateral
The KSh2.5 billion term loan was flagged as a major liability in TransCentury’s December 2023 disclosures. The debt is secured against:
- Corporate guarantees
- Equity stakes in subsidiaries including East African Cables and Avery East Africa Limited
The company believes that a successful restructuring will improve cash flow, restore creditor confidence, and avoid triggering asset seizures or forced administration.
🔮 Outlook: Can the Firm Avoid Collapse?
TransCentury’s current path reflects a broader trend among Kenyan corporates opting for debt restructuring over insolvency. The coming months will be critical as it negotiates with lenders and liquidates assets.
📌 Internal link: Companies that rebounded from near receivership
📌 Internal link: Understanding Equity Bank’s role in Kenya’s debt market
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