Government Plans Closure of 300 Companies in Kenya
Thousands Risk Job Losses
Thousands of Kenyans risk losing jobs after the government announced plans to shut down over 300 companies. Moreover, the closures are expected within the next three months.
Gazette Notice Issued
Registrar of Companies Damaris Lukwo issued a gazette notice on January 2, 2026. Additionally, she revealed plans to remove the firms from the registry beginning April.
Sectors Affected
The companies earmarked for dissolution operate in consultancy, security, media, publishing, and construction. Furthermore, transport, supply, education, insurance, internet, and branding firms are also affected.
90-Day Window Provided
Lukwo announced a 90-day window for objections. Consequently, Kenyans can express reservations before the companies are struck off the registry.
Legal Basis for Dissolution
The Registrar cited Section 894 (3) of the Companies Act. Therefore, companies failing compliance will be removed after three months from publication.
Crackdown on Non-Compliance
The announcement follows a crackdown on non-compliant firms. Moreover, the government aims to ensure accuracy in company operations nationwide.
Role of Business Registration Services
The Business Registration Services (BRS) oversees company regulation under the Attorney General’s office. Additionally, BRS operates under the Companies Act of 2015.
Grounds for Dissolution
Companies may be struck off for failing to lodge annual returns. Alternatively, dissolution may occur through court orders or voluntary closure.
Possible Suspension by KRA
The Kenya Revenue Authority may suspend dissolution in case of active tax disputes. Ultimately, this ensures fair resolution before companies are removed from the registry.
