Express Kenya plans to raise additional capital from existing investors by selling 50 million new shares at a price the company says will be disclosed at a later date.
The pricing of the shares will determine how much the company will be raising. Express Kenya’s share price closed at Sh7.18 on Friday, implying a value of Sh359 million for the rights issue shares.
The company may, however, opt to price the rights issue at a discount to the market price to entice uptake of the offer by shareholders.
Express Kenya, a struggling logistics firm that is venturing into real estate development, has relied heavily on loans from some of its directors including Hector Diniz, amid years of losses.
“On 28 May 2026 the directors of Express Kenya Limited resolved to offer up to 50,000,000 new ordinary shares … in proportion of one new ordinary share for every share held,” the company said in a cautionary notice to the Nairobi Securities Exchange (NSE).
“Additional information and terms and conditions of the transaction will be provided by the company in an information memorandum to be published with the approval of the Capital Markets Authority.”
The cash call could see Mr Diniz further raise his ownership in Express Kenya after previously failing to buy out minority shareholders and delist the company.
The top shareholder made an offer of Sh5.50 per share to buy out small shareholders in 2018 when he held 61.6 percent equity in the company.
He received acceptances that would have raised his stake to 71.4 percent, falling short of his minimum 75 percent target.
He subsequently cancelled the takeover bid but raised his increased his ownership to 71.8 percent in 2019 after converting Sh80 million worth of loans advanced to the company into shares.
Property pivot
If successful, the rights issue will double the company’s issued shares to 95.42 million from the current 47.71 million.
The cash call comes shortly after the company raised Sh300 million from the sale of three acres of land in Nairobi’s Industrial Area, signalling increased efforts to boost its war chest as it enters the capital-intensive property development business.
Express Kenya posted a larger net loss of Sh125 million last year, up from Sh107.9 million in 2024. The company’s sales fell to Sh21.2 million from Sh26.3 million, highlighting the extent to which revenue remains insufficient to cover operating costs.
Direct costs alone, for instance, increased to Sh100.1 million from Sh97.8 million. Express Kenya closed 2025 with a book value of Sh472.1 million, largely comprising investment property, including land. The company is valued at Sh342.5 million on the NSE.
The company has posted losses in the last decade after taking a blow from losing its key customer East African Breweries Limited (EABL) in 2011. Its rival DHL took over the EABL contract at the time.