Over 700 companies across the country risk being closed after the government issues a notice of intended dissolution, spelling doom for thousands of Kenyans working in these companies.
In a gazette notice on November 28, Registrar of Companies Damris Lukwo said that the companies will be struck off from the register in the next three months in line with section 894 (2) of the Companies Act.
To avert being struck off from the registrar, Lukwo said that owners of the companies will be required to prove that they are still in business or in operation.
The companies are constituted of organisations in all sorts of sectors, including travel, education, vehicle manufacturing, telecommunications, and trading, among others.
"Pursuant to section 894 (2) 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 (3) months from the date of this publication, unless it is shown that the companies listed below are carrying on business or in operation," the notice read.
The registrar of companies can initiate the dissolution of a company under several circumstances, including if the company has defied several laws, such as not filing annual returns or operating without proper documentation.
Other circumstances that can lead to a company being dissolved include Insolvency, where a company cannot pay its debts; voluntary dissolution; and fraud or misconduct. These are other reasons why companies are dissolved in Kenya.
For a company to open up again after dissolution, it must apply for restoration, either through the High Court or directly through the registrar.
During the application process, the company will be required to demonstrate that it was in operation at the time of striking off and that six years have not lapsed since the dissolution.
The notice comes two weeks after the Deputy Registrar of Companies, Hiram Gachugi, announced that 126 companies had already been dissolved and struck off from the registrar.
The companies constituted organisations in key sectors, including logistics companies, real estate companies, manufacturing companies, and even retail.
In the same gazette notice, the registrar released another list of 308 companies facing imminent closure if action is not taken.
