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Thousands of Jobs at Risk as Govt Plans to Close Over 60 Companies in 3 Months

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The Registrar of Companies has issued a warning to at least 69 companies across Kenya, saying they risk being removed from the official business register within the next three months.

The notice was published in the Kenya Gazette on May 15, under Section 897(3) of the Companies Act (Cap. 486). It gives the affected businesses a final deadline before they are struck off the register.

According to the notice, any company listed will be removed after three months if they fail to respond or comply.

The Registrar stated:

“Pursuant to Section 897(3) of the Companies Act, the Registrar of Companies gives notice that the names of the companies listed below shall be struck off from the Register of Companies after three (3) months from the date of this publication. Any person who has an objection is invited to show cause why the companies should not be removed.”

The law requires that a company cannot be removed immediately. It must first be given at least three months after the Gazette notice before final action is taken.

Once a company is struck off, it legally stops existing. This means it cannot operate, sign contracts, or carry out any business activities in Kenya.

The affected companies are spread across many sectors of the economy, including transport, hospitality, real estate, healthcare, pharmaceuticals, energy, manufacturing, mining, beauty products, fashion, advertising, internet services, and hardware businesses.

Reports also indicate that even a long-established motor company, believed to have been operating for over 90 years and employing more than 3,000 people, is among those at risk.

This move comes at a time when many businesses in Kenya are struggling, with a growing number shutting down due to economic pressure.

In April, over 1,300 companies were removed from the register by the Deputy Registrar. Earlier in May, another 51 companies were also dissolved under the same law.

However, affected business owners still have a chance to save their companies. They can file missing documents, clear unpaid obligations, or prove that their businesses are still active before the deadline expires.