NAIROBI, Kenya- Thousands of Kenyans are facing potential job losses after 116 companies were dissolved and another 115 issued notices signalling possible closure within three months, highlighting the deepening strain on the country’s business environment.
According to Kenya Gazette Notice No. 94 dated January 3, 2024, Registrar of Companies Joyce Koech confirmed that dozens of firms across manufacturing, retail, ICT, energy, logistics, education and other service sectors were struck off the Register of Companies in December.
“Pursuant to section 897 (4) of the Companies Act, 2015, it is notified… that the following companies are dissolved and their names have been struck off the Register of Companies,” the notice reads.
Companies Already Dissolved
Among the firms dissolved include Chandarana Investment Limited, Afsol Energy Limited, Innovate Medical Devices Limited, Phoenix Supply Chain Limited, Sunlight Industry Company (K) Limited, Walmart Wholesalers Limited, and Ideal Freight Kenya Limited.
Others struck off the register include Kisae Education Institute Limited, Wealth Creation Limited, and Taji Institute Company Limited, among several others.
Under Section 897 of the Companies Act, a company may apply to be struck off the register through its directors, subject to conditions set out in law.
115 More Firms at Risk of Closure
In a separate notice, the Registrar warned that 115 additional companies could be struck off within three months unless cause is shown.
“Pursuant to section 893 (3) of the Companies Act, the Registrar… gives notice that the names of the companies specified hereunder shall be struck off… at the expiration of three months from the date of publication,” the Gazette states.
Companies that issued closure warnings include Jinan Contractors Limited, Technocrat Ventures Limited, Anselm Design Limited, First Global Health Limited, Grow with Hope Foundation, Peponi Holdings Limited, and Sato Management Limited.
Also listed are Sinbad Limited, Ramazon Limited, Sky Horse Company Limited, Synergy Overseas Limited, Sunny Irrigation Limited, Dualis Limited, and Aviation Enthusiasts Limited.
The Registrar invited members of the public to show cause why the companies should not be removed from the register, as provided for under the law.
Wider Job Losses and Economic Pressure
The wave of closures mirrors a broader trend of layoffs in Kenya’s private sector. The Federation of Kenya Employers (FKE) reported that about 70,000 jobs were lost in the formal private sector between October 2022 and November 2023.
FKE attributed the losses to high interest rates, unpredictable market conditions, and frequent changes in government policies and regulations.
While the employers’ body proposed the creation of a support fund to cushion affected workers and struggling firms, such a mechanism has yet to be established.
Several companies have already announced redundancies. In November 2024, security firm G4S Kenya issued a notice indicating plans to lay off at least 400 employees, citing reduced business volumes, high operational costs and harsh economic conditions.
Despite the layoffs, the government has maintained that the economy is on a recovery path, pointing to falling inflation, which dropped to 2.7 pc in October 2024, the lowest level in 14 years.
