Kenya's Registrar of Companies has notified more than 700 firms of impending dissolution unless they prove ongoing operations. The gazette notice, dated November 28, gives affected businesses three months to respond under the Companies Act. This action targets companies across various sectors that may have failed to comply with legal requirements.
On November 28, Registrar of Companies Damris Lukwo published a gazette notice warning over 700 companies nationwide of their potential removal from the official register. Under section 894(2) of the Companies Act, the firms face striking off after three months from the publication date if they do not demonstrate active business or operations.
The notice states: "Pursuant to section 894 (2) 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 (3) months from the date of this publication, unless it is shown that the companies listed below are carrying on business or in operation."
Affected companies span diverse sectors, such as travel, education, vehicle manufacturing, telecommunications, and trading. Dissolution can occur for reasons including failure to file annual returns, operating without proper documentation, insolvency, voluntary winding up, or involvement in fraud and misconduct.
To reverse dissolution, companies must apply for restoration either through the High Court or directly to the registrar. Applicants need to show they were operational at the time of striking off and that fewer than six years have passed since the action.
This follows a recent announcement by Deputy Registrar Hiram Gachugi two weeks earlier, confirming the dissolution of 126 companies in sectors like logistics, real estate, manufacturing, and retail. The current notice also includes a separate list of 308 companies at risk of closure without intervention.
Such measures aim to maintain an accurate register, but they threaten jobs for thousands employed in these firms.