The High Court has declined to grant orders restraining Equity Bank appointed receivers and administrators from taking over TransCentury PLC and East African Cables (EAC), marking a significant development in the protracted debt recovery battle between the financial giant and the troubled investment group.
Justice Francis Gikonyo ruled on Friday morning that he could not issue the interim relief sought by TransCentury and EAC to stop the bank’s agents from assuming control of the two firms.
The decision follows fresh applications by the companies seeking an additional 120 days to settle outstanding debts owed to Equity Bank, despite having already received two extensions from the court.
The receivers, Muniu Thoithi and George Weru of PricewaterhouseCoopers (PwC) took control of the firms on 19th June 2025, one day after the second extension granted by the court lapsed. They had previously attempted to take over operations in June 2023 but were stopped by a court order issued days later.
In rejecting the latest application, Justice Gikonyo stated that the jurisdiction of the court had been challenged by Equity Bank, and as such, he could not grant the orders being sought until that issue is resolved. The matter is scheduled to return to court on 24th July 2025.
The judge’s decision aligns with his earlier remarks in the 20th March 2025 ruling, where he explicitly stated that no further extensions would be granted beyond the additional 90 days offered at that time. He had cautioned against enabling “unwanted habits” by the applicants.
“Accordingly, in the interest of justice, there is sufficient reason to review the time for repayment of the debt and appointment of the receivers. Nevertheless, any such extension should be given once to avoid prejudice to the defendants or unwanted habit by the applicant,” Justice Gikonyo noted in the ruling.
Despite acknowledging the debt, TransCentury and its subsidiaries have made no repayments to Equity Bank since June 2023, even as they benefitted from repeated injunctions halting recovery efforts.
The companies have consistently maintained that they are in the process of securing investors or selling off assets, including East African Cables Tanzania Limited.
Legal experts have cast doubt on the likelihood of the latest applications succeeding, noting that courts are generally not permitted to review their own decisions made on review applications. Though rephrased, the current applications are viewed by some as attempts to re-litigate the March 2025 orders.
The TransCentury Group’s total loan obligations to Equity Bank currently stand at over KES 10.25 billion. Specifically, TransCentury owes KES 5.6 billion, East African Cables KES 2.3 billion, and Civicon East Africa KES 2.3 billion.
The ruling now clears the way for Equity Bank’s appointed receivers and administrators to steer the two companies through a recovery process, even as court battles continue.