Kenyans Stare at Unemployment After 44 Companies Announce Plans to Dissolve Within 3 Months

Undated photo of job seekers queuing to submit applications in Nairobi
A photo of job seekers queuing to submit applications in Nairobi
Nairobi County Government

Hundreds of Kenyans are staring at being unemployed after about 44 companies announced plans to dissolve within 3 months.

In a Gazette notice released on Friday, the companies were listed by the Registrar of Companies, Joyce Koech who asked the public to submit remarks on the looming dissolution.

"The Registrar of Companies gives notice that the names of the companies specified here under shall be struck off from the Register of Companies at the expiration of three months from the date of publication of this Notice and invites any person to show cause why the companies should not be struck off from the Register of Companies," read part of the notice.

These companies are in different sectors including, hospitality, consultancy, real estate, ICT, construction, and communication among others.

Kenyans queue for Jobs in Nairobi.
Kenyans queue for Jobs in Nairobi.

However, the registrar did not provide the reason why some of the companies sought to be dissolved.

According to section 897 of the Companies Act, companies seeking to be struck off by the government need to apply to the Registrar. 

The application is only approved if it's made on behalf of the company by its directors or a majority of them.

Also, the application must contain such information (if any) as is prescribed by the regulations.

"As soon as practicable after striking the name of the company off the Register, the Registrar shall publish in the Gazette a notice that the company's name has been struck off the Register and the date of the striking off," reads part of the Act.

However, the Act does not affect the power of the court to liquidate a company which has been struck off the register.

According to the Companies Act of 2015, these companies must exhibit financial insolvency and an inability to manage debt before proceeding with the dissolution process.

Meanwhile, as some companies announced plans to be dissolved, more than 65 others were struck out of the government register as announced by the Registrar in the Gazette notice.

Some of the dissolved companies are in different fields including consultancy, trading, real estate, hospitality, fashion, and motor vehicle, among others.

Job seekers
Job seekers protest over unemployment in Nairobi on October 2019.