More than 130 companies in Kenya have applied for dissolution, signaling a tough economic period that could leave thousands of workers without jobs.
Both employed and unemployed Kenyans are now facing increased uncertainty as businesses struggle to stay afloat in a difficult financial environment.
A recent gazette notice from the Registrar of Companies, Joyce Koech, confirmed that a total of 134 companies have submitted applications for dissolution.
This development comes at a time when the government is working to create a better business environment to support enterprises and start-ups.
64 Companies Approved for Dissolution, More at Risk
Out of the 134 companies that applied for closure, 64 have already been approved for dissolution. The Registrar of Companies noted that these businesses will officially be removed from the Register of Companies unless there is an objection to the process.
“Pursuant to section 897 (3) of the Companies Act, the Registrar of Companies gives notice that the names of the companies set out in the Schedule hereto shall, unless a cause is shown to the contrary, be struck off the Register of Companies and the companies shall be dissolved,” read part of the notice from Koech.
In addition, the Registrar released another list containing 74 more companies that are set to be struck off the register by May 25, if no objections are raised.
“Pursuant to section 897 (3) of the Companies Act, the Registrar of Companies gives notice that the names of the companies specified hereunder shall be struck off from the Register of Companies at the expiry of three months from the date of publication of this notice and invites any person to show cause why the companies should not be struck off from the Register of Companies,” the notice further stated.
Widespread Impact on Kenyan Workers and Industries
The closure of these 134 companies will affect a wide range of industries in Kenya, potentially leading to mass job losses. Not only will direct employees suffer, but businesses that rely on these companies for supplies and services will also feel the impact.
Furthermore, the Registrar of Companies confirmed that two companies have already been completely dissolved and are no longer recognized as active businesses in the country.
One of the affected businesses is Bobmil Industries Limited, a well-known mattress manufacturing company located along Mombasa Road in Nairobi. The company, which provided employment to thousands of Kenyans, was officially removed from the register on February 14.
Three Companies Restored to the Register
While many companies are being dissolved, the Registrar also announced that three businesses have been reinstated into the Register of Companies. However, the notice did not provide details on why these companies were restored.
“Pursuant to section 914 (4) of the Companies Act, 2015, it is notified for information of the general public that the Registrar of Companies has restored the following company to the Register of Companies with effect from the date of this publication,” the notice stated.
High Operational Costs Forcing Companies to Close
In recent years, many companies in Kenya have been forced to lay off employees due to rising operational costs. High taxation, increased business expenses, and economic challenges have made it difficult for businesses to remain profitable.
According to the Companies Act, a company can apply for dissolution if it is no longer conducting any business, is under liquidation, or if its directors decide to close it down voluntarily.
As Kenya’s economic challenges persist, more businesses may find it difficult to continue operations, putting even more jobs at risk in the coming months.
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