Mass Job Losses as 140 Companies Close Down in Kenya
Kenya has been hit with another wave of mass job losses after the government confirmed the shutdown of 60 more companies, with 80 others set to follow in the coming weeks. This development adds to a growing list of businesses that have been dissolved as the purge of inactive or non-compliant firms continues.
In a gazette notice published on Friday, Deputy Registrar of Companies Hiram Gachugi announced the closures, citing Section 897(4) of the Companies Act.
“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 publication of this notice,” the notice stated.
With the official announcement, the affected firms have now been completely dissolved. Their names have been struck off the Companies Register, meaning they can no longer carry out business operations, open or use bank accounts, or engage in legal contracts under their former names.
The closure affects a wide range of sectors, including technology, healthcare, education, real estate, shipping, and energy, showing that no single industry has been spared.
Although the gazette notice did not explain the reasons behind the mass dissolution, Kenyan law provides several grounds for such action.
Companies can be deregistered if they fail to file annual returns, breach statutory requirements, or remain inactive for long periods. In some cases, business owners themselves request the closure through voluntary dissolution when they are unable or unwilling to continue operations.
One of the biggest consequences of deregistration is the fate of company assets. Once a business is struck off, any property or assets it still holds automatically become bona vacantia—a legal term meaning “ownerless property.” Such assets can then be claimed by the government.
To avoid this, companies are usually advised to settle their affairs and distribute assets to shareholders or creditors before the dissolution process is finalised.
Another challenge is that once a company is removed from the register, it cannot be reinstated under the same name. Anyone wishing to revive operations must apply afresh for registration, and even then, approval is not guaranteed.
In the same gazette notice, the Registrar also announced that 80 more companies are currently under review and will soon be struck off in line with Sections 897(3) and 897(4) of the Companies Act. This points to an even deeper purge of firms across the country.
The latest closures come only days after 75 companies were formally deregistered on September 5, pushing the total number of businesses dissolved in just weeks to more than 140.
The development has raised concerns about the economic climate, job security, and the struggles faced by many companies in keeping up with compliance and operations in the current business environment.
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