Mass Job Losses Looms as Govt Dissolves 126 Companies, Warns 392 Others

Kenya is facing another wave of potential job losses after the Registrar of Companies released new lists of firms that have either been dissolved or are at risk of closure.

Deputy Registrar of Companies Hiram Gachugi announced that 126 companies have already been struck off the register. 

These include businesses in logistics, real estate, manufacturing, and retail. The closures affect thousands of employees across the country.

In addition, 308 other companies have been warned that they may soon be dissolved if they cannot prove they are still active. 

The notice did not give a fixed timeline for these closures.

“Unless it is shown that these companies are carrying on business or operations, the Registrar shall strike them off the register,” the notice said.

Another 92 companies have been given three months to provide reasons why they should not be dissolved.

If no action is taken, they will automatically be removed from the official company register.

This means a total of 392 companies are either already closed or at risk, which is worrying news for employees and business owners alike, especially at a time when unemployment remains high in Kenya.

Just two weeks earlier, the Registrar had announced plans to close 140 companies, giving owners three months to challenge the decision.

In the 2024/25 financial year, the Business Registration Service reported that 2,260 companies applied to wind up their operations by June 2025. 

Companies can be dissolved for several reasons, including failure to file annual returns, non-compliance with legal requirements, long periods of inactivity, or voluntary closure.

The move comes as Kenya continues to face challenges in the private sector. Many small and medium-sized businesses struggle to remain operational, and closures like these show the fragility of jobs in the country.

Experts say that affected employees should act quickly to seek alternative employment or skills training, while business owners must ensure their companies meet all legal requirements to avoid being struck off.

This latest action by the Registrar of Companies sends a clear signal: companies that fail to operate or comply with the law risk closure, and employees may lose their jobs. 

Kenyans are now watching closely to see how many businesses will survive this crackdown and how it will affect the job market.