(NAIROBI, KENYA) – Investors in six suspended stocks at the Nairobi Securities Exchange are demanding answers from the Capital Markets Authority over delays in resolving receiverships. The stocks of Mumias Sugar, ARM Cement and Deacons East Africa have now been frozen from trading for eight years. The six suspended stocks have locked in KES27 billion ($174 million / £138 million) in paper wealth for affected investors.
A shareholder of Mumias Sugar, Taiti Hanningtone, has petitioned the CMA through city law firm I.C. Law LLP. He is asking for reasons for the continued suspension of the stock. He also wants to know whether the company has been complying with regulations requiring it to furnish shareholders with material information including financial results. He said the prolonged suspension has left shareholders without enough information about the regulatory status and future of their investment.
Mumias was suspended from trading in September 2019 after it was placed under receivership for defaulting on a debt to KCB Bank. At the time of suspension, Mumias owed banks KES12.5 billion ($80.6 million / £63.8 million). The petition letter says the statutory framework is based on fair, efficient and transparent capital markets. It also requires full, timely and accurate disclosure of material information, investor protection and fair treatment of issuers and investors. The letter says shareholders should not be left indefinitely uncertain about whether their securities remain suspended temporarily, whether there is a defined pathway to resumption or whether the investment is ultimately destined for delisting.
Mumias’ stock was initially suspended for three months. It was then extended by a further three months at the expiry of the period. In April 2020, the CMA announced that the freeze had been extended indefinitely alongside that of Deacons East Africa. Even as the sugar miller remains suspended from trading, its assets in Western Kenya were leased to Ugandan businessman Sarbjit Singh Rai through his firm Sarrai Group in 2021 for a period of 20 years.
Mumias was trading at KES0.27 per share when it was suspended. It had a market capitalisation of KES413.1 million ($2.7 million / £2.1 million). Deacons was put into administration in November 2018 after its directors called in administrators amid piling debt. The company had lost key franchises like Woolworths and Mr Price. It was trading at KES0.45 per share, translating to a market valuation of KES55.6 billion ($359 million / £283 million) at the time of suspension.
For ARM Cement, the suspension of trading was effected in August 2018 shortly after the company was put under administration. It was struggling to service debt of KES14.4 billion ($93 million / £73 million). The suspension locked in KES5.33 billion ($34.4 million / £27.2 million) in investor wealth. The company last traded at a share price of KES5.55.
The cement firm’s assets in Kenya were acquired by National Cement, owned by businessman Narendra Raval, in 2020 for KES5 billion ($32.3 million / £25.5 million). This was part of a liquidation exercise by the administrators to raise funds to pay creditors. Despite further asset sales in Tanzania and Rwanda, shareholders did not receive any dues. The company underwent an insolvent liquidation where total liabilities exceeded the total value realised from the sale of assets.
In June 2025, the shares of investment firm TransCentury and its subsidiary East African Cables were suspended from trading indefinitely. This happened after the firms were seized by Equity Bank over unpaid debt of KES4.74 billion ($30.6 million / £24.2 million). TransCentury and EA Cables were valued at KES1.26 billion ($8.1 million / £6.4 million) and KES432.8 million ($2.8 million / £2.2 million) respectively when they were frozen from trading.
The joint receivers are disposing of TransCentury’s assets to recover funds on behalf of creditors. EA Cables is set for sale to an investor who intends to revive the company and repay its share of the debt to Equity. Bamburi Cement shares also remain suspended from trading at the NSE. The suspension is pending possible delisting of the company after it was fully acquired by Tanzanian businessman Edhah Abdallah Munif through his conglomerate Amsons Group.