Hundreds of Kenyans are staring at possible job losses after 140 companies issued formal notices announcing their plans to shut down operations.
The announcement was made through a gazette notice dated October 31, in which the affected firms declared their intention to dissolve.
Members of the public were given three months from the publication date to raise any objections or provide reasons why the companies should not be removed from the official records.
According to the notice, the Registrar of Companies stated, “In accordance with section 897(3) of the Companies Act, the Registrar of Companies gives notice that the names of the companies listed below shall be struck off from the Register of Companies three months from the date of this publication unless cause is shown to the contrary.”
The notice further invited any concerned parties to submit their objections before the deadline. This mass deregistration follows a worrying report by the Business Registration Service (BRS), which revealed that a total of 2,260 companies applied to wind up their operations in the financial year ending June 2025 — a sign of growing economic challenges within the country.
The affected firms represent a wide range of industries, including tourism and travel, hospitality, shipping, real estate, construction, retail, and investment sectors.
Many of these companies have been struggling to stay afloat amid rising operational costs, slow business recovery post-pandemic, and increasing tax burdens.
At the same time, Deputy Registrar of Companies Hiram Gachugi confirmed that two additional firms had already been dissolved and struck off the register with immediate effect.
For the remaining companies, once the three-month notice period expires, they will officially cease to exist as legal entities.
This means they will no longer be allowed to operate, sign contracts, run bank accounts, or conduct any form of business under their registered names.
Under Kenyan law, a company may be deregistered or dissolved for several reasons, including failure to file annual returns, non-compliance with statutory obligations, or prolonged inactivity.
The law requires every registered company to submit annual returns and financial statements each year to keep its registration active. If a firm fails to do so repeatedly, the Registrar may assume the business is dormant and begin the strike-off process.
In other cases, some companies voluntarily choose to close down due to financial difficulties, management disputes, or unprofitable operations. When this happens, they are required to follow the proper legal procedure for dissolution.
Once a company is officially removed from the Register of Companies, any assets it still holds automatically become bona vacantia—a legal term meaning the property has no owner.
The state then has the right to take ownership of such assets. To avoid this, companies planning to close are usually encouraged to distribute or sell off their assets before the dissolution process is completed.
The deregistration process typically begins with the Registrar issuing warning letters to non-compliant companies, often giving them 14 or 28 days to respond.
If they fail to comply, a gazette notice is published, announcing the intention to strike off the company.
The process is finalized when the company’s name is officially removed from the register, marking the end of its legal existence.
This latest mass deregistration notice serves as a wake-up call for business owners across Kenya to ensure they remain compliant with statutory requirements and maintain active operations.
For employees, however, the move signals uncertain times ahead as hundreds prepare for the harsh reality of job losses in an already struggling economy.
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