Kenya is facing another wave of job cuts. Sixty companies have been dissolved, and 80 more are on the verge of deregistration.
The notice was published on Friday by Hiram Gachugi, the Deputy Registrar of Companies. It was issued under Section 897(4) of the Companies Act.
What the Closure Means
The 60 companies have already been struck off the official register. This means:
- They cannot run businesses under their former names.
- They cannot open or use bank accounts.
- They cannot sign contracts as legal entities.
Any assets left behind by these firms will be treated as bona vacantia (ownerless property). The state has the power to claim such property unless the assets are shared out before closure.
Why Companies Are Closed
The Registrar did not give specific reasons for the shutdowns. However, under Kenyan law, companies can be deregistered due to:
- Failure to file annual returns.
- Non-compliance with legal requirements.
- Inactivity for a long time.
- Voluntary applications by the owners.
80 More at Risk
Alongside the closures, 80 other companies were listed for possible deregistration. They have been flagged under Sections 897(3) and 897(4) of the Act. If they fail to fix their compliance issues, they too will be dissolved.
Growing Concern
This news comes only days after 75 other companies had their operations formally ended on September 5.
The rising number of closures is sparking concern. With companies shutting down across technology, healthcare, real estate, education, shipping, and energy, more Kenyans could soon face job losses.
