School, Hotel Among 177 Companies Govt Has Shut Down

In the initial notice, 31 companies were removed from the register of companies, effective February 5.

Viral Tea Ke Writer Viral Tea Ke Writer
Feb 17, 2025 - 16:42 Updated: Feb 17, 2025 - 16:47
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School, Hotel Among 177 Companies Govt Has Shut Down
Kenyans Queue for jobs in Kisii town. /PSCU

177 companies risk closure after the Registrar of Companies, Joyce Koech, directed their immediate deregistration. The Registrar, in a series of notices in the Kenya Gazette, issued a warning to 44 others.

In the initial notice, 31 companies were removed from the register of companies, effective February 5.

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

The notice targets companies that include a school for autistic children in Nairobi, a hotel and resort company, and a marine tour business. In a follow-up notice, a trading company was removed from the register after declaring insolvency in November 2021.

Registrar of Companies Business Registration Services Joyce Koech during an interview on January 31, 2022. /CITIZEN TV

Additionally, 81 more companies were slated for dissolution effective February 5, "unless cause is shown to the contrary."

In a separate notice, 35 additional companies, including a Nairobi-based car dealership and a pharmacy, were informed of their immediate removal from the register, effective February 7.

Another final notice for dissolution was issued to 29 companies, whose names were also removed from the register starting February 7.

In addition to the 177 companies deregistered this month, Koech also issued a warning of intent to dissolve 44 more companies.

"Pursuant to section 897(3) of the Companies Act, the Registrar of Companies gives notice that the names of the companies set out in the Schedule hereto shall, unless cause is shown to the contrary, be struck off the Register of Companies and the companies shall be dissolved," the notice read.

The list includes a gym and sports centre, multiple investment firms, car dealerships, and real estate companies.

The specific reasons for the dissolution were not provided. However, several factors may prompt the Registrar of Companies to take such action. A company can be dissolved if a court issues a winding-up order, leading to its official closure.

Additionally, failure to submit a statutory report to the registrar can result in dissolution. A company may also be struck off the register if it ceases operations.

However, a company can only apply for removal from the register if it has not changed its name or the nature of its business. Many companies that dissolved previously did so due to the stringent regulatory and taxation measures put forth by the government.

The closure of the companies will worsen the unemployment crisis in Kenya as well as the toxic business environment in the country as many Kenyans will not only lose their jobs but also find it very hard to start and maintain businesses owing to punitive taxation by the government and reduced spending power.

Earlier this month, the Kenya National Chamber of Commerce and Industry (KNCCI) reported that 60 per cent of Kenyan businesses do not expect to hire more employees in 2025, with eight business sectors such as retail and wholesale, professional services, hospitality and tourism, manufacturing and processing, transport, financial services, and mining, likely to put a hold in terms of recruiting a new workforce.

Job seekers holding up placards. /FILE

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