By Benadeta Mwaura - Reporter
Kenya, 2 July 2026 - Equity Bank Kenya is set to recover nearly half of the KSh 4.8 billion owed by infrastructure investment firm TransCentury Plc after the receivers agreed to sell the company's controlling stakes in two subsidiaries for a combined KSh 2.2 billion.
The transaction marks a significant step in the ongoing recovery process after TransCentury was placed under receivership by Equity Bank in 2025 following a loan default that dates back to 2023.
According to joint receivers George Weru and Muniu Thoithi of PricewaterhouseCoopers (PwC), TransCentury's 70% stake in Tanzanian transformer manufacturer Tanelec Limited will be sold to Msufini Limited, a Tanzanian industrial company that manufactures chlorine and sodium hydroxide.
The deal is valued at KSh2.1 billion (US$16.35 million) and remains subject to the fulfilment or waiver of agreed conditions before completion.
At the same time, TransCentury's 94.4% stake in Avery East Africa Limited (AEA), a regional provider of weighing equipment, infrastructure and energy solutions, will be acquired by SPAC Hill Capital Limited for KSh 111.1 million.
Combined, the two disposals are expected to generate KSh 2.2 billion in cash proceeds.
"The total consideration for the Tanelec transaction is US$16.35 million (KSh 2.1 billion) and completion remains subject to satisfaction or waiver of agreed conditions precedent," the joint receivers said.
Adding that subject to completion of the transactions, the receivers will apply the realisations, together with proceeds from other transactions, towards the settlement of TransCentury's obligations in accordance with applicable insolvency laws and creditor priorities.
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The proceeds will allow Equity Bank to recover close to 46% of the outstanding KSh 4.8 billion debt, although the lender is still pursuing additional recoveries from other TransCentury assets.
The sale also represents the second acquisition by Msufini from the distressed infrastructure firm after it purchased East African Cables Tanzania about two years ago in a deal estimated at KSh 115 million.
Financial records show Tanelec was one of TransCentury's strongest-performing subsidiaries. The company was valued at KSh 2.25 billion at the end of 2023 after generating KSh 3.1 billion in revenue and KSh 42 million in profit before tax. TransCentury originally acquired the business in 2007 for KSh 78.7 million, making the disposal one of the group's largest asset monetisation deals.
Avery East Africa, which operates across Kenya, Uganda, Tanzania and Rwanda, had been valued at KSh 319 million in 2023. However, the agreed purchase price of KSh111.1 million is roughly one-third of that valuation, highlighting the discounted prices often associated with distressed asset sales.
The latest disposals form part of a broader restructuring of the once-diversified infrastructure investment company. Equity Bank also placed East African Cables Plc, another key TransCentury subsidiary, under administration over a separate KSh 2.2 billion debt, with a proposed acquisition by Cable Experts Limited currently awaiting regulatory approval.
The transactions underscore Equity Bank's continued efforts to recover billions of shillings tied up in one of Kenya's longest-running corporate debt disputes while providing a pathway for the affected subsidiaries to continue operating under new ownership.