Looming mass layoffs as over 160 companies seek to dissolve over next three months
Looming mass layoffs as over 160 companies seek to dissolve over next three months
Over 160 companies dealing in different products and services are set to close their doors as the economic hard times continue to bite.
Through a Gazette Notice dated March 28, the government stated that 70 companies have been dissolved after a three-month notice period.
“Pursuant to Section 897 (4) of the Companies Act, it is notified for the information of the general public that the following companies are dissolved and their names have been struck off the Register of Companies with effect from the date of publication of this notice,” reads the notice from Hiram Gachugi, Deputy Registrar of Companies.
According to the notice, the companies closed their doors effective Monday, March 17.
The notice further indicated that another 94 companies have applied to be removed from the register of companies, effectively shutting their business. This is to happen in the next three months.
“Pursuant to Section 897(3) of the Companies Act, the Registrar of Companies gives notice that the names of the companies specified hereunder shall be struck off from the Register of Companies at the expiry of three months from the date of publication of this Notice,” the deputy registrar of companies said.
The government invited Kenyans with any reservations in regard to the dissolution of the mentioned companies to show cause as to why they should not be dissolved.
The closure comes amid a survey conducted by the Central Bank of Kenya involving over 1,000 CEOs that revealed concerns about rising business costs, unpredictable taxation, and regulatory instability, which are perceived as threats to economic growth and investment.
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Furthermore, reports indicate that 60 percent of Kenyan businesses do not plan to expand their workforce in 2025, reflecting a cautious stance amid high operational costs and an unfavorable regulatory environment.
The private sector showed modest growth in February, as indicated by the Stanbic Bank Kenya Purchasing Managers’ Index (PMI), which edged up to 50.6 from 50.5 in January.
Sectors such as agriculture, manufacturing, and construction contributed to this expansion. Despite this, business sentiment remains subdued, with only 5 percent of firms expecting output growth over the next year.
This week, the Kenya Manufacturers Association (KAM) stressed the need for a stable and predictable policy environment to boost the manufacturing sector. They highlighted that strict adherence to the National Tax Policy and timely tax refunds are crucial for stimulating growth.
KAM stated that achieving a 20 percent GDP contribution from manufacturing by 2030 requires consistent policies that allow major tax changes only every four years. The association underscored that uncertainty hampers private sector activity, urging the government to create a more favorable business environment for job creation and increased exports.
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