Job loss fears surge as state shuts 62 companies in latest purge
The Registrar of companies has earmarked a further 101 companies for closure in the coming 3 months unless a valid reason is given to prevent the dissolution.
The Kenyan government has continued its purge of companies with the latest announcement of closing down 62 companies.
In a notice published in the Kenya Gazette dated April 17, the Deputy Registrar of Companies, Hiram Gachugi, revealed that 62 companies across multiple sectors have been dissolved, effective immediately from the date of publication.
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“Pursuant to section 897 (4) of the Companies Act, it is notified for general information that the mentioned companies are dissolved,” the notice read.
The full list of the dissolved companies may be found in the April 17 issue of the Gazette Notice numbers 4989 and 4990.
Although the Registrar did not give clear reasons for the dissolution, the clampdown on companies could be on the back of the intensified crackdown on corporate non-compliance.
Apart from the 62 that have officially been struck off the register of companies, the Registrar has earmarked a further 101 companies for closure in the coming three months unless a valid reason is given to prevent the dissolution.
Stringent enforcement
This recent wave of company closures follows a pattern of stringent enforcement by the government, which has ramped up efforts to address issues such as tax evasion, poor governance, and failure to adhere to set guidelines.
While the authorities defend the actions as necessary to ensure corporate responsibility, the looming threat of job losses that comes with it is causing widespread concern among employees and unions.
The Federation of Kenya Employers (FKE) recently raised an alarm over the country's still fragile employment situation.
In one of its board meetings in 2023, where it voiced the concerns of employers amid the tough operating environment, the federation noted the country was not yet back on track since Covid-19 struck.
Meanwhile, the latest figures by the Kenya National Bureau of Statistics (KNBS) show that despite the country adding about 850,000 new jobs in 2023, the state still struggles to create quality jobs, as the majority of the new jobs were created in the informal sector.
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