Ruto’s administration shuts down 122 companies despite high unemployment
Ruto's administration shuts down 122 companies despite the high rate of unemployment in the country
Ruto’s administration shuts down 122 companies despite the high rate of unemployment in the country.
Just days after it was revealed that the economy is forecast to grow by 6.2%, the government announced that at least 122 enterprises will be liquidated nationwide.
The Registrar of Companies, Joyce Koech, announced that the in question companies will cease operations in a gazette notification dated Friday, January 20.
“Pursuant to section 897(4) of the Companies Act, 2015, it is notified for the information of the general public that the following companies are dissolved and their names have been struck from the Register of Companies, with effect from the date of publication of this notice,” read part of the notice.
The companies are engaged in a range of activities, including manufacturing, investing, travel, and supply.
Anakolo Limited, Africa-China Culture, and Art Limited, Access Renewables Limited, Fibu Safaris, Hms Africa Limited, Opticals Limited, and Mama Ross Coffee Factory Limited are just a few of the businesses included in the notice.
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However, the Register of Companies remained mum on the grounds for the companies’ dissolution.
The Companies Act states that there are a number of situations in which a company may be dissolved, including when its directors or a majority of its directors have requested to the registrar that the business be struck off the register.
Additionally, when a company is not operating or conducting business, as well as when the registrar firmly feels that the company’s affairs have been completely closed and are in a liquidation stage.
In most instances, however, companies apply for deregistration when their operations get impeded by the cost of living – which is odd in 2023 especially since the state announced that the economy is expected to grow following the reduced borrowing.
This was attributed to the reduced pandemic effects.
According to the Treasury, the managed and measured borrowing has steadied the economy as well as easing the debt burden on Kenyans.
The new administration under President William Ruto is aimed at reducing the amount borrowed to fund the country’s numerous development projects.
“We want to slash the budget by Ksh300 billion and moving forward, we will not be borrowing to finance recurrent expenditure because it is not right, prudent, or sustainable,” Ruto announced on September 22, 2022.
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