Hundreds of Kenyans are set to lose their jobs after 140 companies issued notices of dissolution.
The notices were issued via a gazette notice dated October 31, with members of the public given three months from the date of publication to dispute the intended dissolution of the firms.
“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,” stated the notice.
“The Registrar of Companies invites any person to show cause why the companies should not be struck off from the Register of Companies,” read the notice.
This comes as the Business Registration Service reported that 2,260 firms applied to wind up their operations in the year ended June 2025.
The list of the affected companies cuts across various industries, including travel, hospitality, shipping, real estate, retail, construction, and investments.
At the same time, the Deputy Registrar of Companies, Hiram Gachugi, announced the dissolution of two companies.
Upon lapse of the three months, the companies will be struck off the Register of Companies and will no longer be allowed to conduct business, enter into legal contracts, or operate bank accounts under their previous names. However, the two dissolved companies are to be struck off immediately.
Under the law, companies can be deregistered for various reasons ranging from failure to file annual returns to non-compliance with statutory requirements.
Companies are legally required to file annual returns and financial statements with the Registrar each year. If a company repeatedly fails to submit these documents, the Registrar may assume it is no longer active and initiate the strike-off process.
In some common cases, companies are deregistered because of inactivity over a prolonged period, while others voluntarily apply for closure.
Once a company has been struck off, the assets it still possesses become bona vacantia, meaning they are considered ownerless, and the state has the power to claim them. To avoid this, companies are usually advised to distribute their assets before dissolution.
Typically, the dissolution process begins with warning letters, which include a 14- or 28-day ultimatum, followed by a gazette notice announcing the intended dissolution, and finally the formal strike-off.
