Job Crisis Looms as 87 Companies Face Closure in Kenya
Kenya is staring at a wave of job losses after the Registrar of Companies announced the dissolution of 24 companies and issued notices of intended closure to 63 others, affecting businesses across multiple sectors.
According to an official notice published in the Kenya Gazette:
“Under Section 897(4) of the Companies Act, it is notified for the information of the general public that the following companies are dissolved and their names have been struck off the Register of Companies with effect from the date of publication of this notice.”
In a separate notice, an additional 63 firms were warned of impending strike-off within three months unless they show cause:
“Under 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… and invites any person to show cause why the companies should not be struck off.”
This development is expected to impact hundreds—if not thousands—of jobs, especially in the manufacturing, services, and retail sectors where many of the affected companies operated.
Why Are Companies Being Dissolved?
The Companies Act allows the Registrar to strike off companies for reasons including:
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Failure to file annual returns and financial statements
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Failure to respond to official communications
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Lack of a valid registered office
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Non-compliance with corporate governance laws, such as failing to maintain directors or a company secretary
Typically, the strike-off process involves warning letters, a grace period of 14 to 28 days, gazette notifications, and eventually the legal dissolution of the company.
Once dissolved, a company ceases to exist as a legal entity. Its remaining assets may revert to the state as bona vacantia, and directors or shareholders may be held personally liable if the closure resulted from non-compliance.
Scenes of Concern
Long queues of job seekers in areas such as Wabera Street in Nairobi have become symbolic of the rising unemployment crisis in Kenya. With the potential closure of 87 companies, the situation could worsen unless policy reforms and interventions are implemented to support business compliance and sustainability.
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