Many Kenyans could soon find themselves jobless following a recent announcement by the Registrar of Companies that two more firms are set to be shut down in the next three months.
In a notice published in the June 5 edition of the Kenya Gazette, the registrar declared that unless someone objects within three months, the two companies will officially be removed from the list of registered businesses in the country.
“According to section 894(3) of the Companies Act, the Registrar of Companies gives notice that the names of the companies listed below will be struck off from the companies register after three (3) months from the date of this notice.
The Registrar invites any person to show cause why the companies should not be struck off,” the notice stated.
One of the companies set for dissolution is Caltex House Service Station Limited, a multinational oil and motor service brand that has been in business for over 75 years. It runs 165 service stations across the country.
The company, as described on its website, provided a variety of high-quality lubricants and engine oils designed to boost engine performance in all types of driving conditions.
This development comes just a few years after a well-known Kenyan petroleum brand revealed plans to acquire Caltex’s operations in both Kenya and Uganda.
Back in 2020, the Kenyan oil company started the process of acquiring Caltex, aiming to take over its 165 service stations, one terminal, seven fuel depots, six aviation fueling facilities, and one lubricants blending plant.
The second company on the list also operates in the motor care sector, signaling another hit to workers employed in the automotive and petroleum industries.
These looming closures add to the growing concerns for Kenyans, who are already struggling with a rising cost of living and a tough job market. Many multinational companies have recently left Kenya, pointing to the increasing tax burden and unfavorable economic conditions as the main reasons for their exit.
In 2024 alone, several major companies announced their departure from the Kenyan market due to high operational costs and a difficult business environment.
Among the biggest names was Procter & Gamble (P&G), the American multinational company, which said it would be exiting Kenya by December 2024. The decision would see the loss of 850 jobs.
Another major blow came from Base Titanium, an Australian mining company. It announced that it would also be shutting down operations in Kenya by the end of the year due to reduced titanium reserves, which threatens the jobs of at least 1,200 workers.
Security services provider G4S Kenya and Tile and Carpet Centre have also downsized their operations, leading to hundreds of job losses.
These continuous exits by key industry players highlight a deeper economic challenge facing Kenya, where increased taxes and the high cost of doing business are pushing companies out and leaving thousands of workers uncertain about their future.
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