The Registrar of Companies has put at least 69 businesses across the country on notice, warning they will be permanently removed from the country's official register within three months.

🇰🇪 Breaking It Down

The directive was issued through Gazette Notice dated May 15, anchored under Section 897(3) of the Companies Act, Cap. 486, setting a firm and legally binding countdown for all the firms named.

“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 (3) months from the date of this publication, and invites any person to show cause why the companies should not be struck off from the Register of Companies,” said the registrar.

The stipulated three months, as outlined in Section 897(3) of the Companies Act, governs the voluntary striking off and dissolution of companies, mandating that the “Registrar cannot strike a company’s name off the Register until at least three months after publishing a notice in the Gazette.”

📌 What You Need to Know

This implies that once struck off the register, a company ceases to exist in the eyes of the law. It can no longer sign contracts, conduct business, or operate legally in any capacity within the country, with immediate effect from the removal date.

The targeted businesses cut across nearly every corner of Kenya's economy, touching sectors such as transport and logistics, hospitality and food services, real estate, healthcare, pharmaceuticals, energy production, and manufacturing companies.

Also facing closure are firms involved in mining, beauty and personal care, fashion and clothing, supply chain management, branding and advertising, internet services, nursing facilities, and general hardware businesses spread across various parts of the country.

Of note is a 90-year-old car company with a revenue estimate of Ksh200 billion per year, with more than 3,200 employees, which is also at risk of closure.

This comes at a time when the country is facing a tumultuous phase in the job market, with thousands of companies closing this year alone.

In April alone, the Deputy Registrar of Companies dissolved and struck off more than 1,300 firms from Kenya's official register.

📰 Source: Kenyans.co.ke