Eighteen months after winning shareholder approval and a Capital Markets Authority nod, Standard Group Plc has suspended its previously proposed KSh 1.5 billion rights issue, putting its flagship recapitalization plan on hold.
- •In a notice to investors, the board said the decision was taken at a special meeting on 4 February 2026 after reviewing prevailing market conditions and alternative financing options.
- •The company said the move is meant to safeguard shareholder value, but does not amount to a cancellation of the offer.
- •The board now says the pause will allow more time to reassess the structure, timing, and viability of the transaction in light of evolving market and operational conditions.
Under the approved plan, Standard Group had been cleared to issue 283,661,120 new shares at KSh 5.29 each, structured as 11 new shares for every 3 held. The proceeds were earmarked for settling existing liabilities, securing working capital, supporting organic and inorganic growth, and funding the group’s digital transformation.
When CMA granted approval, Standard Group board chair Dr. Julius Kipngetich said: “This approval marks a significant milestone in the Standard Group’s transformation journey… the rights issue provides the vital capital injection needed to accelerate our digital-first strategy and push toward positive financial results within the next 12 months.”
Standard Group said it will continue evaluating its funding strategy and disclose any material developments.
