At least 141 companies dealing in different products and services were dissolved as the pain of the tough economic times in the country continued to bite.
The government, through a Gazette Notice dated Friday, October 18, stated that the companies had already been struck off the register.
‘’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 publication of this notice," read the notice in part.
In a similar notice, the registrar announced that 64 companies are on their way to full dissolution. The companies in question will be dissolved on January 18, 2025, with individuals who who have objections urged to come forward.
"The Registrar of Companies invites any person to show cause why the companies should not be struck off," a statement read.
While the reasons for the dissolution of the companies were not listed, the tough economic times and operational costs could likely have played a part.
The latest development came just days after another Gazette Notice highlighted the dissolution of, among others, the famous Ukwala Supermarket. The supermarket's fate was sealed in October 2024, five years since the company applied for liquidation of its assets over a Ksh1 billion debt that it owed its creditors.
The supermarket also owed the taxman Ksh840 million in taxes at the time of the application for liquidation. All these factors, combined with the emergence of fierce competition in the retail store business, ultimately made it impossible for the popular store to cease operations.
Other companies, instead of dissolution, opt to significantly downsize to stay afloat, a tactic that has seen hundreds of Kenyans lose their jobs.
However, not all dissolution comes from tough times as some companies simply shut down because their short-term objectives have been achieved.
In recent times, an alarming trend of manufacturing companies shutting down has sparked concern, with at least 30 crucial manufacturing companies shutting down in under a decade.
Not only does the shutting down of manufacturing companies lead to massive job losses, but it also has a ripple effect in the sub-sectors like the food and beverage industry, automotive, leather, plastics and so on.
