Thousands of Kenyans are at risk of losing their jobs after the government initiated the process of dissolving over 90 companies operating across key sectors of the economy.

🇰🇪 Breaking It Down

In a notice dated Friday, July 3, the Deputy Registrar of Companies, Hiram Gachugi, said that 94 companies would be removed from the register beginning in September this year.

According to him, the companies earmarked for closure would soon cease operations in the country unless they explain, within three months, why they should remain registered.

"Pursuant to 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," the notice read in part.

📌 What You Need to Know

"The companies shall be struck off the registry at the expiry of three months from the date of publication of this notice and invite any person to show cause why the companies should not be struck off from the registry," it added.

The companies targeted for dissolution cut across several sectors of the economy , including those involved in information technology, software development, engineering, construction and education.

Others engage in healthcare, transport, manufacturing, media, real estate, hospitality, agriculture, consultancy, beauty services, printing, textiles, plastics, renewable energy, and tea processing.

Some of the companies had established operations in major towns across the country, raising concerns about the long-term employment impact on those regions.

However, in the notice, Gachugi did not explicitly state why the government would dissolve the companies despite concerns that the move would trigger mass unemployment.

The three-month notice is designed to protect creditors, shareholders, employees and any individual who may have an interest in the affected companies.

📰 Source: Kenyans.co.ke