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Economy

Thousands of Kenyans Face Job Loss as Over 240 Companies Set to Close

Judith MwauraBy Judith MwauraJune 15, 2025No Comments3 Mins Read
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Thousands of Kenyans are staring at possible job losses after the government revealed plans to dissolve more than 240 companies offering various goods and services.

The development, announced in an official gazette notice published on June 13, 2025, is expected to have a major impact on workers and the economy at large.

According to the Deputy Registrar of Companies, Hiram Gachugi, 74 companies have already been removed from the official register of companies. This means they are now legally considered dissolved and can no longer operate in Kenya.

The affected companies operate in a wide range of sectors, including healthcare, construction, water supply, trade, energy, transportation, and manufacturing, among others.

These industries employ large numbers of people, and their closure could lead to significant job losses.

“Pursuant to section 897 (4) of the Companies Act, it is notified for the information of the general public that the following companies are dissolved and their names have been struck off the Register of Companies with effect from the date of this publication,” read the gazette notice issued by Gachugi.

In addition to the 74 already removed, another 169 companies have been listed for possible removal from the register.

The Deputy Registrar explained that if no objections are raised within the next three months, these companies will also be officially struck off.

“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 this publication, and invites any person to show cause why the companies should not be struck-off,” Gachugi added.

There are several reasons why a company may be removed from the register in Kenya. These include failure to comply with legal requirements such as not submitting annual returns, lack of valid licenses, or operating without proper registration.

In other cases, companies may be dissolved because of financial problems such as insolvency—meaning they are unable to pay their debts. Other reasons could include fraud, misconduct, or voluntary closure by the company owners.

When a company is dissolved, it loses its legal status and cannot do any business in the country. However, it is possible to restore a dissolved company.

This can be done either by applying to the High Court or by submitting a request directly to the Registrar of Companies.

To be successfully restored, the company must prove that it was still in operation at the time it was removed and that not more than six years have passed since it was struck off. If successful, the company can be brought back to the register and resume its operations.

This latest announcement follows a similar gazette notice dated June 5, in which the Registrar dissolved a well-known multinational, Caltex House Service Station Limited.

The company, which has been in operation for more than 75 years, runs 165 service stations across Kenya and employs thousands of people.

The news has caused concern among workers and business owners, as the closure of such a large number of companies could worsen unemployment and slow down economic growth.

Many are now waiting to see if some of the companies listed will challenge the dissolution or apply for restoration.

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Judith Mwaura is a dedicated journalist specializing in current affairs and breaking news. She is passionate about delivering accurate, timely, and well-researched stories on politics, business, and social issues. Her commitment to journalism ensures readers stay informed with engaging and impactful news.

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