The government announced that at least 122 companies will be dissolved across the country just days after it was announced that the economy is expected to grow by 6.2 per cent.
In a gazette notice dated Friday, January 20, the Registrar of Companies, Joyce Koech, noted that the companies in question will seize operations.
"Pursuant to section 897(4) of the Companies Act, 2015, it is notified for the information of the general public that the following companies are dissolved and their names have been struck from the Register of Companies, with effect from the date of publication of this notice," read part of the notice.
The companies operated in various sectors including manufacturing, investing, travel, supply, etc.
Some of the companies named in the notice include Anakolo Limited, Africa-China Culture, and Art Limited, Access Renewables Limited, Fibu Safaris, Hms Africa Limited, Opticals Limited, and Mama Ross Coffee Factory Limited among others.
Koech, however, did not disclose the reason why the companies were dissolved.
According to the Companies Act, there are various circumstances that may lead to the dissolution of a company including where the company's directors or a majority of the directors have applied to the registrar that the company is struck off the register.
Also, where a company is not carrying on its business or is not in operation as well as when the registrar fully believes that the affairs of the company have been fully closed and are in a liquidation state.
In most instances, however, companies apply for deregistration when their operations get impeded by the cost of living - which is odd in 2023 especially since the state announced that the economy is expected to grow following the reduced borrowing. This was attributed to the reduced pandemic effects.
According to the Treasury, the managed and measured borrowing has steadied the economy as well as easing the debt burden on Kenyans.
The new administration under President William Ruto is aimed at reducing the amount borrowed to fund the country's numerous development projects.
"We want to slash the budget by Ksh300 billion and moving forward, we will not be borrowing to finance recurrent expenditure because it is not right, prudent, or sustainable," Ruto announced on September 22, 2022.
