134 Companies Announce Dissolution In 30 Days As Thousands Risk Job Losses
As the economic downturn continues, more than 130 enterprises have filed for dissolution.
The decision spells death for thousands of Kenyans, both employed and unemployed, who are looking for better chances.
According to a gazette notification published by the Registrar of Companies, Joyce Koech, 134 firms have filed for dissolution.
This comes as the government continues to advocate for a better working environment to encourage the growth of businesses and start-ups.
Of the 134 firms, 64 have already been granted dissolution approval, with the Registrar of Companies indicating that they will be struck off if no one contests the procedure.
“Pursuant to section 897 (3) of the Companies Act, the Registrar of Companies gives notice that the names of the companies set out in the Schedule hereto, shall, unless a cause is shown to the contrary, be struck off the Register of Companies and the companies shall be dissolved,” a notice from Koech read in part.
In addition, the Registrar issued another notice identifying 74 firms that will be struck off Kenya’s Register of Companies by May 25.
“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 publication of this notice and invites any person to show cause why the companies should not be struck off from the Register of Companies,” the notice read.
The 134 enterprises in Kenya are scattered throughout numerous industries, and their dissolution is likely to have an influence on Kenyans in the job market as well as those in other auxiliary industries.
The Registrar also reported that two companies had been fully dissolved from the country’s business register.
One of the enterprises removed from the list, effective 14 February, is a mattress manufacturing company on Nairobi’s Mombasa Road that employed thousands of Kenyans.
However, the Registrar reported that three firms have been reinstated on the Register of Companies.
The message did not specify the reasons for their reinstatement.
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“Pursuant to section 914 (4) of the Companies Act, 2015, it is notified for information of the general public that the Registrar of Companies has restored the following company to the Register of Companies with effect from the date of this publication,” it added.
In recent years, many corporations have moved their personnel home, blaming Kenya’s high commercial operational costs.
According to the Companies Act, a company may, through its directors or a majority of them, ask the Registrar of Companies to be removed from the register as it ceases operations and existence.
Other reasons a company may be dissolved include situations in which it no longer does business or is in liquidation.
134 Companies Announce Dissolution In 30 Days As Thousands Risk Job Losses
