NAIROBI, Kenya — Hundreds of Kenyan businesses face dissolution after the government issued a notice to strike off 742 companies from the Register of Companies, a decision expected to threaten hundreds of jobs across multiple sectors amid ongoing economic strain.
In a Gazette notice published on Friday, Registrar of Companies Damaris Lukwo announced that the affected firms will be removed from the register within three months unless credible objections are submitted. The bulk of the closures is expected in February 2026.
“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… and invites any person to show cause why the companies should not be struck off,” the notice stated.
According to the notice, the firms fall into several categories of non-compliance or inoperability. Some have completed their original objectives or remained dormant for prolonged periods, prompting voluntary or administrative wind-up to avoid accumulating legal or tax obligations.
Others are facing dissolution due to deeper structural challenges, including inability to pay debts, shareholder disputes, mismanagement, or breach of statutory obligations such as failure to file annual returns.
Under Kenyan law, companies must submit annual returns and financial statements to the Registrar each year. Consistent failure—especially over multiple years—triggers the presumption that the firm is no longer operational, allowing the government to initiate a strike-off.
Business governance experts note that the purge reflects broader economic pressures, with many firms struggling to remain afloat amid rising costs, reduced credit access, and subdued consumer spending.
“This level of dissolution signals both compliance enforcement and the tough operating environment many SMEs are facing,” a corporate governance analyst familiar with company registry trends told this reporter.
If no objections are raised within the three-month window, the companies will be formally struck off the Register. Once dissolved, they lose their legal personality—meaning they cannot operate bank accounts, conduct business, enter into contracts, or sue and be sued in their corporate name.
The strike-off procedure typically follows a structured process: initial warning letters with a 14- or 28-day deadline, then publication of the dissolution intention in the Gazette, followed by the final removal if no action is taken.
Legal experts warn that directors of struck-off companies may still incur personal liabilities, particularly where debts, statutory breaches, or unresolved disputes exist.
The dissolution of more than 700 companies is expected to have ripple effects on employment and local economies, especially if some of the firms are operational but non-compliant.
The notice did not specify the sectors represented in the list, but preliminary reviews show a mix of trading, consultancy, manufacturing, transport, ICT, and construction firms.
Labour groups have urged affected employees to seek clarification from employers and to monitor the Gazette for updates.
With the 90-day objection window now active, stakeholders—including directors, creditors, customers, and employees—have been advised to raise concerns with the Registrar if they believe a company should remain active.
The mass strike-off marks one of the most sweeping compliance clean-ups by the government in recent years, signalling a renewed push to streamline the corporate registry and enforce accountability within the private sector.
