Transcentury allays default fears as share price falls

Monday February 15 2016

From left, former TransCentury CEO Gachao Kiuna

From left, former TransCentury CEO Gachao Kiuna and some of the firm's founding members Eddy Njoroge, Jimnah Mbaru and Zephania Mbugua. PHOTOS | FILE | NATION MEDIA GROUP

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Listed investment firm TransCentury has moved to reassure investors of their ability to repay the Sh8 billion debt that falls due next month.

The company whose chief executive left last month has said it is confident that the convertible bond issued by its wholly owned subsidiary, TC Mauritius Holdings Limited (TC Mauritius) will be settled on time.

“The company is implementing a fund raising programme and the board is confident that an agreement will be made to settle the TC Mauritius debt,” the company's board of directors said in a statement in a regulatory filling.

The management did not however give details on how they will raise the money stating that formal announcements including all relevant information on the entire progress will be made at the appropriate time.


Last week, the company was the biggest looser at the Nairobi bourse shedding 19 per cent of its share value to close trading at Sh5.7.

Trans-Century was valued at Sh13.35 billion upon entering the stock market in July 2011, when it listed by introduction some 267 million shares at Sh50 each.
The share price climbed to Sh57 before starting to roll back. Today, it is worth Sh2.4 billion.

The company formed by a group wealthy Kenyans back in 1997 has investments in energy, engineering and logistics in a number of countries in Africa.