The Registrar of Companies has given non-compliant private firms 30 days to provide their financial statements, including tax filings and copies of active trade licences, contracts, and invoices.
In the notice dated Tuesday, April 15, the non-compliant companies were also directed to confirm in writing whether they were still active and operating.
The said private companies were further ordered to submit all their outstanding statutory documents, including annual returns and the beneficial ownership register.
"Companies are expected to respond to the Registrar on Companies through the compliance@brs.go.ke within 30 days from the date of this notice," read part of the notice.
While making the announcement, the regulator noted that failure to heed the aforementioned demands within the stipulated time frame would attract penalties under the Companies Act, Section 894(2).
The Registrar of Companies further revealed that the penalties could include the issuance of a final letter and the publication of a notice in the Kenya Gazette to remove the defiant company’s name from the register.
The announcement followed the lapse of a one-month letter in which all private companies were directed to file annual returns as per the Companies Act and the Limited Liability Partnerships Act.
In the letter issued on October 17, 2024, the Registrar of Companies ordered all private firms to prepare and submit a register of their beneficial owners and present it before the government entity within four weeks of the notice.
The government entity noted that the decision was informed by the surge in cases of money laundering, which, according to it, fuelled and financed milia activities.
The Registrar at the time revealed that failure by a company to file the information continuously for five years placed the firm at risk of being struck off the government’s register, as per Section 894 of the Companies Act.
In the notice, companies that failed to file the details of beneficial owners of the firms with the Registrar of Companies risked a fine of Ksh500,000 and Ksh50,000 for each day the company failed to submit the information.
“Failure to comply will attract an administrative fine of Ksh2,000 for the company and each officer in default, with an additional penalty of Ksh100 for every day the default continues, applicable to both the company and the responsible officers,” the agency announced.
"Take note that non-compliant companies and LLPs shall be struck off the Register per Section 894 of the Companies Act and 33A of the Limited Liability Partnerships Act," it further noted.
