Kenya faces a new wave of potential job losses following the dissolution of 109 companies and the pending deregistration of 78 others, according to the latest gazette notice by the Registrar of Companies, Hiram Gachugi.
The notice, published under Section 897(4) of the Companies Act, confirmed that the 109 firms have been officially struck off the Register of Companies, meaning they can no longer conduct business, enter into contracts, or operate bank accounts under their former names.
The affected companies span a wide range of industries, including travel, healthcare, shipping, real estate, retail, construction, and investments, suggesting that the layoffs will have far-reaching effects across Kenya’s economy.
Although the notice did not specify the reasons behind the closures, experts note that companies are typically deregistered for failing to file annual returns, comply with statutory requirements, or due to prolonged inactivity. Some may also voluntarily opt for dissolution as part of restructuring or exit strategies.
Once a company is struck off, any remaining assets are classified as bona vacantia—property without an owner—and can be claimed by the government. To avoid this, companies are encouraged to distribute assets before closure.
The Registrar also revealed that 78 additional firms have declared their intention to dissolve and will be removed from the register within 30 days unless any objections are raised. This announcement has heightened fears of more mass layoffs, further straining Kenya’s job market amid a tough economic climate.
In a rare positive turn, the gazette also indicated that two companies were restored after it was determined they had been struck off by mistake or were still operational at the time of deregistration.
The mass deregistrations highlight ongoing challenges faced by businesses in Kenya, emphasizing the need for compliance, sustainability, and stronger corporate governance to avoid similar fates.
