Kenya is set to witness a wave of corporate closures as 140 companies have been issued notices of impending dissolution. The notices, published in a gazette dated October 31, give the public three months to dispute the intended strike-off.
According to the gazette, the Registrar of Companies, under section 897(3) of the Companies Act, announced that the listed companies will be removed from the official Register of Companies unless valid objections are raised. “The Registrar of Companies invites any person to show cause why the companies should not be struck off from the Register of Companies,” the notice stated.
The affected firms span diverse sectors, including travel, hospitality, shipping, real estate, retail, construction, and investment. Deputy Registrar of Companies Hiram Gachugi also announced the immediate dissolution of two companies. Once the three-month period lapses, these companies will no longer operate legally, conduct business, enter contracts, or maintain bank accounts under their previous names.
The surge in closures follows the Business Registration Service’s report that 2,260 firms applied to wind up operations in the year ending June 2025. Companies are usually deregistered due to non-compliance with statutory requirements, such as failure to file annual returns or financial statements. Prolonged inactivity or voluntary closure applications are other common reasons.
When a company is struck off, any remaining assets become bona vacantia, meaning they are deemed ownerless and can be claimed by the state. To avoid losing assets, companies are advised to distribute them before dissolution.
The deregistration process typically starts with warning letters that provide a 14- or 28-day ultimatum. This is followed by a gazette notice and, ultimately, a formal strike-off if compliance is not met.
With hundreds of companies set for closure, the move could have a significant impact on employees, investors, and the broader economy. Kenyans and stakeholders are urged to monitor the gazette notices closely and act within the stipulated period to raise objections if necessary.
