Cables gets lifeline after Sh232m deal
The East African Cables (EAC) has fulfilled the initial portion of an order placed by Kenya Power for electrical cables and conductors valued at Sh232 million.
The troubled Nairobi Stock Exchange (NSE) listed firm said in a statement, such support for local manufacturers aligns with national goals related to industrialization and economic transformation.
Speaking when he confirmed the dispatch of the first batch of electrical cables and conductor’s to Kenya Power, East African Cables CEO Paul Muigai (Pictured) said local purchases have a positive ripple effect on the local economy.
“As we flag off the first batch, East African Cables celebrates the continued support by Kenya Power to local manufacturers, which is a boost for the national industrialisation and economic transformation efforts,” Muigai said.
He said the cables manufacturer is on course to service the order placed by Kenya Power in several batches running through to the end of the year.
This development comes as another relief for the troubled firm, which recently obtained a court injunction in regard to an administration notice dated June 16, 2023, issued by Equity Bank who had moved to appoint an administrator over the manufacturer.
The injunction had been issued on the basis that Equity had appointed an administrator while the parties were engaged in negotiations.
“I am glad that the brief setback that this unfortunate action had brought to the business is behind us and we can now focus on what we do best, providing quality cables to our customers across the region,” E.A Cables chair D.G Waweru had said.
The cables manufacturer – which is a subsidiary of Transcentury – was placed under administration courtesy of a $34.3 million (Sh4.8 billion) debt owed to the Equity Bank by the parent company.
Equity had placed Transcentury Group and its subsidiary East Africa Cables Ltd under administration and receivership respectively, after what appeared to be a disagreement on the modalities of settling the debts. East Africa Cables owes TransCentury Sh1.9 billion.