Mass Job Losses Expected as 126 Companies Close, 392 Face Possible Shutdown
Kenyans are facing the possibility of widespread job losses following the latest release from the Registrar of Companies, which detailed both recently closed companies and those at risk of closure.
In the most recent edition of the Kenya Gazette, Deputy Registrar of Companies Hiram Gachugi announced that 126 companies have already been officially dissolved.
The notice stated, in part:
“Pursuant to section 897 (4) of the Companies Act, it is notified for general information that the under-mentioned companies are dissolved.”
These 126 companies cover a wide range of sectors, including logistics, real estate, manufacturing, and retail, highlighting that no industry is immune from the ongoing wave of closures.
In addition to the already dissolved firms, the registrar also released a list of 308 companies that face imminent closure if they fail to demonstrate that they are actively conducting business operations.
Gachugi warned that companies must prove their ongoing activities to avoid being struck off the official register. The notice, however, did not specify a strict timeline for action.
The notice further explained:
“Pursuant to section 894 (2) of the Companies Act, unless it is shown that the companies listed below are carrying on business or in operation, the Registrar shall have the companies struck off the Registrar, and the company will be dissolved.”
On top of this, another 92 companies are scheduled to be dissolved within the next three months if their owners do not provide valid reasons to oppose the dissolution. The Gazette read:
“Pursuant to section 897 (3) of the Companies Act, it is notified that at the expiration of three (3) months from the date of this gazette, the names of the undermentioned companies shall, unless cause is shown to the contrary, be struck off the register of companies and the company shall be dissolved.”
Taken together, this means that a total of 392 companies have either been dissolved or are at risk of closure, marking a challenging period for both employers and employees, especially as Kenya continues to grapple with high unemployment levels.
This follows a previous announcement just two weeks ago, when the registrar warned of the impending closure of 140 companies, giving members of the public a three-month window to challenge the intended dissolutions.
For the 2024/25 financial year, the Business Registration Service reported that a total of 2,260 firms had applied to wind up their operations by the year ending June 2025, reflecting ongoing business contraction in various sectors.
Under Kenyan law, companies can be deregistered for multiple reasons. Common causes include failure to file annual returns, non-compliance with statutory regulations, prolonged periods of inactivity, or voluntary applications by company owners seeking to close their firms.
Some closures result from businesses failing to meet legal requirements, while others come as part of deliberate strategic decisions by company proprietors.
The current wave of closures underlines the pressing challenges facing businesses in Kenya today, from economic pressures to regulatory compliance, and signals a period of uncertainty for thousands of employees nationwide.
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