Hundreds of jobs are at risk in Kenya as 140 companies issue notices of dissolution through a gazette dated October 31. The public has three months to raise objections before the firms are struck off the register. This follows a report of 2,260 firms applying to wind up operations by June 2025.
A gazette notice dated October 31 has put 140 Kenyan companies on the path to dissolution, potentially leading to mass layoffs across multiple sectors. The notice, issued under section 897(3) of the Companies Act, states: “Pursuant to 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 from the date of publication of this notice.” It further invites objections: “The Registrar of Companies invites any person to show cause why the companies should not be struck off from the Register of Companies.”
The affected firms span industries including travel, hospitality, shipping, real estate, retail, construction, and investments. Once the three-month period lapses, these companies will be unable to conduct business, enter contracts, or operate bank accounts under their names. Separately, Deputy Registrar of Companies Hiram Gachugi announced the immediate dissolution of two other firms.
This development aligns with broader trends, as the Business Registration Service reported that 2,260 companies applied to wind up operations in the year ended June 2025. Deregistration often stems from failure to file annual returns and financial statements, non-compliance with statutory requirements, prolonged inactivity, or voluntary closure. Companies must submit these documents yearly to the Registrar; repeated failures prompt strike-off proceedings.
The dissolution process typically starts with warning letters providing a 14- or 28-day ultimatum, followed by the gazette notice and eventual strike-off. Struck-off companies risk having undistributed assets declared bona vacantia, claimable by the state. To prevent this, firms are advised to distribute assets prior to dissolution.
These events highlight ongoing economic pressures on Kenyan businesses, though specific causes for these 140 cases remain tied to standard regulatory processes.