The Registrar of Companies has kicked off the process of shutting down over 750 companies in Kenya, a move that could put thousands of jobs on the line.

🇰🇪 Breaking It Down

This follows the publication of separate gazette notices via the Kenyan Gazette dated August 14, confirming that 200 companies have already been dissolved and formally struck off the official register.

The dissolution as per the notice is anchored on Section 897(4) of the Companies Act (Cap. 486), which requires the  Registrar of Companies to publish a notice in the  Kenya Gazette as soon as practicable after a company's name is struck off the register, officially declaring that the company is dissolved, and took effect immediately upon publication on 14th August.

“PURSUANT to section 897 (4) of the Companies Act, it is notified for the information of the general public that the following companies have been dissolved and their names struck off the Register of Companies with effect from the date of publication of this notice,” stated the notice in part.

📌 What You Need to Know

These 200 firms cut across a wide range of sectors, including construction, logistics, real estate, agriculture, trading, and general consultancy services.

But the closures are not expected to end there, with the Registrar also flagging 550 additional companies for intended dissolution in the same notice, citing Sections 897(3) and 894(3) of the Companies Act.

The aforementioned sections of the Companies Act give the Registrar of Companies the power to strike a company's name off the official register and dissolve it, giving the public and affected parties a mandatory three-month window to show cause against the action

Unlike the earlier 200 batch, these firms have not been struck off yet, and they still have a window to respond.

The notices give affected companies and their directors up to three months from the date of publication to show cause why their names should not be deleted.

“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 publication of this notice, and invites any person to show cause why the companies should not be struck off from the Register of Companies,” the notice stated.

📰 Source: Kenyans.co.ke