94 Companies Dissolved As Kenyans Face Mass Layoff
Thousands more Kenyans are at risk of losing their employment after the government began the process of dissolving more than 90 enterprises in crucial sectors of the economy.
In a notice dated Friday, July 3, Hiram Gachugi, Deputy Registrar of Companies, stated that 94 firms would be deleted from the register commencing in September of this year.
According to him, the companies set to be closed would shortly stop operations in the country unless they explain why they should continue to be registered within three months.
“Pursuant to 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,” the notice read in part.
“The companies shall be struck off the registry at the expiry of three months from the date of publication of this notice and invite any person to show cause why the companies should not be struck off from the registry,” it added.
Companies designated for dissolution come from a variety of industries, including information technology, software development, engineering, construction, and education.
Others engage in healthcare, transport, manufacturing, media, real estate, hospitality, agriculture, consultancy, beauty services, printing, textiles, plastics, renewable energy, and tea processing.
Some of the companies had established operations in major towns across the country, raising concerns about the long-term employment impact on those regions.
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However, in the notice, Gachugi did not explicitly state why the government would dissolve the companies despite concerns that the move would trigger mass unemployment.
The three-month notice is designed to protect creditors, shareholders, employees and any individual who may have an interest in the affected companies.
Anyone with evidence that a company is still operational or has outstanding legal obligations can submit reasons why it should remain on the register before the deadline expires.
Under Kenyan law, a company may be dissolved if it repeatedly fails to comply with statutory requirements, including filing annual returns and maintaining updated company records.
In some cases, companies voluntarily apply to be struck off after ceasing operations, while others may be dissolved following insolvency or liquidation processes provided for under the law.
94 Companies Dissolved As Kenyans Face Mass Layoff
