The Board of Directors of Standard Group Plc has announced the suspension of its previously proposed sale of shares.
According to a notice published on Thursday, February 5, the decision follows a resolution passed during a Special Board Meeting held on February 4, 2026.
“The Board of Directors of the Standard Group Plc wishes to inform its shareholders that, following a resolution passed at a Special Meeting of the Board held on 4 February 2026, the Board resolved to suspend the previously proposed Rights Issue,” the notice read in part.
Reason for Standard Group Rights Issue Suspension
The Standard Group Board stated that the decision follows careful consideration of prevailing market conditions and strategic financing options.
According to the Standard Group notice, the approach aims to ensure that any future capital-raising initiative is aligned with the best interests of the company and its shareholders.
“The suspension is intended to allow the Company additional time to reassess the structure, timing, and viability of the proposed transaction,” the company said in a notice to shareholders.
“The decision was taken prudently and does not reflect any adverse change in the Company’s underlying business or governance,” the notice explained.
The Board emphasised that the suspension does not constitute a cancellation of the share sale.
Shareholders were reassured that the company will continue to evaluate its funding strategy in alignment with the best interests of the company and its investors.
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Commitment to Shareholders
The company promised to ensure commitment to transparency and timely disclosure. All material developments will be communicated in accordance with the Companies Act, 2015, the Capital Markets Authority Code of Corporate Governance Practices for Issuers of Securities to the Public (2015), and the Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023.
The Standard Group’s share sale plan, initially proposed earlier, will remain under review, and the Board has committed to providing timely updates to shareholders.
“The Board shall continue to evaluate the Company’s funding strategy and will communicate any material developments,” the statement noted.
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Proposed Rights Issue Announcement by Standard Group Plc
In a letter dated 29th June 2023, Standard Group Plc announced the approval of a Rights Issue to raise Ksh1.564 billion to strengthen its balance sheet and support turnaround initiatives.
The Board explained that the capital raise would help to improve liquidity, reduce debt obligations, and support long-term sustainability.
Shareholders will receive new shares proportionate to their existing holdings, with full details to be disclosed in an Information Memorandum, subject to CMA approval.
The Company emphasised that the Rights Issue aligns with its strategic plan and aims to enhance operational efficiency, competitiveness, and overall financial stability.
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