The Business Registration Service (BRS) has warned that hundreds of companies could be removed from the official register if they do not update their records and confirm they are still active.
In a statement on Tuesday, April 29, the BRS said that many companies failed to comply with a government directive issued on October 17, 2024, which required them to update their records under Section 93a of the Companies Act.
The directive gave companies until November 30, 2024, to submit the required information, including details about their real (beneficial) owners.
The Registrar reminded businesses that failure to remain compliant could stop them from legally doing business in Kenya.
"Please note that the deadline for compliance lapsed and that consequently, in accordance with section 894(1) of the Companies Act, the Registrar of Companies has formed a reasonable belief that the listed companies on the notice may not be conducting business or not in operation," the statement reads.
According to BRS, some of the companies also failed to submit their annual returns, which are required by law.
“Failure to file annual returns and financial statements for five years or more as stipulated under Section 894(1)," Gachugi Hiram, the deputy registrar, said.
The BRS has now published a list of companies affected by the review. Those included must take action within 30 days of receiving official notice.
Hiram said that the companies should write back confirming whether they are still operating and they must also provide proof, such as tax returns, financial records, or contracts,” the Registrar said.
"All companies contained in the list are required to confirm in writing within 30 days from the date of this letter whether the company is currently active and operating."
"Provide supporting evidence which may include: Recent financial statements or tax filings, and copies of active trade licenses, contracts or invoices. Submit all outstanding statutory documents, including Annual Return and the beneficial owners register," the statement reads.
He further added that if there is no response within 30 days, the register will begin the process of removing the company’s name from the register. This may include publishing the notice in the Kenya Gazette.
BRS is urging affected companies to send their responses to compliance and to visit their handbooks for more guidance.
