Thousands of Kenyans are bracing for job losses as 116 companies have officially shut down, with another 115 warning of imminent closures within the next three months. This wave of shutdowns has already led to widespread layoffs across sectors such as manufacturing, retail, ICT, and other service industries, compounding the country’s high unemployment challenges.
In Kenya Gazette Notice No. 94, dated January 3, 2024, Registrar of Companies Joyce Koech listed businesses that were dissolved in December 2023. The notice confirmed that the companies’ names had been removed from the official register under Section 897(4) of the Companies Act, 2015.
The dissolved businesses include prominent firms such as Chandarana Investment Limited, Afsol Energy Limited, Innovate Medical Devices Limited, Phoenix Supply Chain Limited, Sunlight Industry Company (K) Limited, and Walmart Wholesalers Limited. Other companies struck off the register are Ideal Freight Kenya Limited, Kisae Education Institute Limited, Wealth Creation Limited, and Taji Institute Company Limited.
Section 897 of the Companies Act grants the Registrar the authority to remove a company’s name from the register upon receiving an application from the entity. However, under Section 897(3), the Registrar must wait three months after publishing the intention to dissolve a company in the Gazette.
The latest notice also revealed that 115 companies, including Jinan Contractors Limited, Technocrat Ventures Limited, and Peponi Holdings Limited, have issued closure notices. Other firms set to cease operations include Sinbad Limited, Ramazon Limited, Sky Horse Company Limited, and Sunny Irrigation Limited.
In the Gazette, the Registrar invited members of the public to present valid reasons why the listed companies should not be removed from the register. According to Section 893(3) of the Companies Act, the Registrar may exercise the power to strike off a company while allowing stakeholders to show cause for its continued existence.
These mass closures and layoffs underscore the tough business environment in Kenya. The Federation of Kenya Employers (FKE) reported that the formal private sector shed 70,000 jobs between October 2022 and November 2023. FKE attributed these losses to high interest rates, unpredictable market conditions, and frequent changes in government policies and regulations.
Despite the widespread economic challenges, the government insists that Kenya’s economy is rebounding in the post-Covid era. Officials have pointed to a notable drop in inflation, which hit a 14-year low of 2.7% in October 2024, as evidence of improving economic stability.
However, for many affected workers and businesses, the reality of mass layoffs and uncertain market conditions continues to take a heavy toll on livelihoods across the country.
