Concern as Govt Dissolves 200 Companies


The government has issued a notice to 54 Chief Executive Officers (CEOs) that their businesses shall be struck off from the Register of Companies after three months. 

In a notice issued by Joyce Koech, Registrar of Companies, the 54 CEOs are directed to show cause why the companies should not be deregistered after the period lapses.

This is in line with Section 897 of the Companies Act, 2015, which requires the Registrar to issue a notice before striking the name of a company off the register.

“The Registrar may not strike the name of a company off the register under this section until after three months from the date of the publication by the Registrar in the Gazette of a notice stating that the Registrar may exercise power under this section in relation to the company; and inviting any person to show cause why the name of the company should not be struck off,” the Act reads in part.

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Nairobi Review

Failure of the CEOs to provide any reason for not dissolving, the registrar will publish in a subsequent Gazette notice the companies’ names.

“As soon as practicable after striking the name of the company off the Register, the Registrar shall publish in the Gazette a notice that the company’s name has been struck off the Register and the date of the striking off.”

Some enterprises included in the list were Advaya Enterprise Limited, Agency Aktiva Limited, Aptly Technology Limited, Baslum Hardware Limited, Bushido Investments Limited, China Construction Industrial Equipment Installation Engineering Kenya Limited and Clearmode Limited.

Others include Global Edge Limited, Hadithi Plants Limited, Key Data Systems Limited, Jamboy Eye Care Limited, Euroduo Supplies Limited and Coverkraft Limited.

Further, Koech instructed that the 54 companies would be shut down in three months, with the owners given conditions to be met for the decision to be reverted.

“Pursuant to section 897 (3) of the Companies Act, 2015, 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 and invites any person to show cause why the companies should not be struck off from the Register of Companies,” Koech directed.

Additionally, the government dissolved 200 companies following a decision by the respective business directors and shareholders. The decision to dissolve the company was subsequently submitted to the Registrar per the prescribed format required by the government agency.

A significant factor for dissolution is the companies’ inability to manage debt, as it amounts to unsustainable levels. Another reason is primarily attributed to a lack of profitability.

Before dissolving the companies, the Registrar reviews the requests supported with corresponding documents such as minutes of the meetings during which the decision was reached.

The Registrar is then required to conduct a comprehensive assessment of the companies’ annual returns in the past years to assess validity.

According to the Companies Act of 2015, the companies must exhibit financial insolvency and an inability to manage debt before proceeding with the dissolution process.

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AJ Kenyan Safaris





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