Looming unemployment as government dissolves over 70 companies
Looming unemployment as government dissolves over 70 companies
A fresh wave of unemployment is facing select Kenyans after the government announced the dissolution of 78 companies.
In an official notice dated Thursday, April 17, Deputy Registrar of Companies Hiram Gachugi announced that the companies ceased to operate in the country effective April 8.
“Under section 897 (4) of the Companies Act, it is notified for general information that the under-mentioned companies are dissolved,” the notice read in part.
From the list provided by the government, the majority of the companies are involved in financial, real estate, and land investments, while others are in agribusiness.
Several pharmaceutical, educational, consultancy, transportation, and medical companies have also been affected by the dissolution.
Meanwhile, the government has sent a stern warning to 141 companies, warning them to toe the line or else they will follow suit and be dissolved.
”Pursuant to section 894 (3) of the Companies Act, it is notified that the expiration of three (3) months from the date of this Gazette, the names of the under-mentioned companies shall unless a cause is shown to the contrary be struck off the register of companies and the company shall be dissolved,” Gachugi warned.
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In Kenya, for a company to be dissolved, it must have defied several laws, including not filing annual returns or operating without proper documentation.
Insolvency, where a company cannot pay its debts, voluntary dissolution, fraud, or misconduct are other reasons why companies are dissolved in Kenya.
This is not the first time the government has dissolved companies; barely a month ago, the government dissolved 70 more companies.
According to the official notice, the companies closed their doors effective Monday, March 17.
These dissolutions have a myriad of effects, including the loss of jobs for thousands of Kenyans depending on these companies, and they also have a financial impact on the country’s economy.
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