Determine the number of shares in issue before the rights issue.

On 1 January 2025, the company had ordinary share capital of Sh.80,000,000 comprising 8,000,000 ordinary shares of Sh.10 each.
Number of shares in issue = 8,000,000 shares.

The rights issue was 1 ordinary share for every 4 held.
Number of shares offered = $\frac{\text{Number of shares in issue}}{4} \times 1$
Number of shares offered = $\frac{8,000,000}{4} = 2,000,000$ shares.

The rights issue was made at Sh.14 per share and was fully subscribed.
Cash proceeds = Number of shares offered $\times$ Issue price per share
Cash proceeds = $2,000,000 \text{ shares} \times \text{Sh.14/share}$
Cash proceeds = $\text{Sh.28,000,000}$

The cash proceeds raised from the rights issue on 1 April 2025 were Sh.28,000,000.