Government Gives 77 Company Owners Three-Month Ultimatum Before Closure
The Registrar of Companies, Joyce Koech, has issued a three-month notice for the closure of 77 companies operating across Kenya.
In a Gazette notice published on February 5, Koech stated that these companies would be deregistered within the next three months.
She also urged any members of the public who might oppose the move to submit their objections before the deadline.
This action is in accordance with Section 897 (3) of the Companies Act, which grants the Registrar the authority to remove a company’s name from the official register if the business has been inactive or non-operational for a specified period.
“As per Section 897 (3) of the Companies Act, the Registrar of Companies hereby issues a notice that the names of the companies listed below will be struck off the Register of Companies after three (3) months from the publication date of this notice.
The Registrar also invites any concerned party to provide reasons why these companies should not be deregistered,” part of the notice read.
Among the companies listed for deregistration are various Small and Medium Enterprises (SMEs), including online sellers, water suppliers, loan resettlement firms, and an investment company.
Additionally, a digital laboratory, pharmacies, a public transport service provider, and multiple car dealerships are also set to be closed.
Several real estate companies have also been included in the list. These firms are involved in buying, selling, and renting out properties and land on behalf of their clients.
Although the specific reasons for deregistration were not detailed in the notice, companies can be dissolved under various circumstances.
One of the main reasons is when a court issues a winding-up order, which legally mandates the closure of a business.
Another possible cause is failure to submit the required statutory reports to the Registrar, which can result in deregistration.
However, the most common reason for a company’s removal from the register is prolonged inactivity or ceasing business operations altogether.
For a company to be struck off, it must not have changed its name or altered the nature of its business within the period under review.
This latest notice comes shortly after a wave of similar company closures. Just last week, 98 businesses were shut down, and two weeks ago, an additional 116 companies were dissolved.
In another announcement, 115 more companies were identified for closure within the next three months.
With this trend, business owners are being urged to ensure compliance with regulations to avoid deregistration.
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