Over 130 companies have applied for dissolution as tough economic times continue to bite, spelling doom for thousands of Kenyans, both employed and unemployed, who are seeking better opportunities.
In a gazette notice published by the Registrar of Companies, Joyce Koech, 134 companies have applied for dissolution, even as the government continues to champion a better working environment to enable the flourishing of businesses and start-ups.
Of the 134 companies, 64 have already been granted the dissolution green light, with the Registrar of Companies stating that they will be struck off if no one challenges the process.
"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 a cause is shown to the contrary, be struck off the Register of Companies and the companies shall be dissolved," a notice from Koech read in part.
Additionally, the Registrar issued another notice listing 74 companies set to be struck off the Register of Companies in Kenya by 25 May.
"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 from the date of publication of this notice and invites any person to show cause why the companies should not be struck off from the Register of Companies," the notice read.
The 134 companies are spread across various industries in Kenya, and their dissolution is likely to impact Kenyans in the employment sector as well as those in other auxiliary industries.
The Registrar also announced that two companies have been completely dissolved from the list of businesses operating in the country.
One of the companies struck off the list, effective 14 February, was Bobmil Industries Limited, a mattress manufacturing firm located on Nairobi’s Mombasa Road, which employed thousands of Kenyans.
However, the Registrar announced that three companies had been restored to the Register of Companies. The notice did not clarify the reasons for their reinstatement.
"Pursuant to section 914 (4) of the Companies Act, 2015, it is notified for information of the general public that the Registrar of Companies has restored the following company to the Register of Companies with effect from the date of this publication," it added.
Many companies have, in the past few years, sent their employees home, citing high business operational costs in Kenya.
According to the Companies Act, a company may, through its directors or a majority of them, apply to the Registrar of Companies to be struck off the register as it ceases operations and existence.
Other reasons a company might be dissolved include situations where it is no longer carrying out any business or is under liquidation.
