Kenya’s business landscape is facing a major shake-up, with over 160 companies shutting down operations due to mounting economic pressures. A Gazette Notice dated March 28 confirmed that 70 firms have already been dissolved, while another 94 have applied for deregistration, set to take effect in the next three months.
Government Confirms Company Closures
Deputy Registrar of Companies Hiram Gachugi, in an official notice, announced that these companies have been removed from the Register of Companies under Section 897 (4) of the Companies Act.
“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,” the statement read.
Additionally, the notice revealed that another batch of 94 companies has applied for dissolution, meaning more layoffs are expected in the coming months. Kenyans with objections to these closures have been invited to present their concerns before the process is finalized.
Economic Uncertainty Driving Business Closures
The wave of shutdowns comes amid concerns from business leaders regarding rising operational costs, unpredictable tax policies, and a volatile regulatory environment.
A recent survey by the Central Bank of Kenya (CBK), involving over 1,000 CEOs, indicated that these factors pose significant threats to economic growth. The study also revealed that 60% of Kenyan businesses do not plan to expand their workforce in 2025 due to financial constraints and uncertainty.
Manufacturing and Private Sector Growth Stagnant
While Kenya’s private sector showed slight growth in February—evident in the Stanbic Bank Kenya Purchasing Managers’ Index (PMI) rising from 50.5 in January to 50.6—the overall business sentiment remains subdued.
The Kenya Association of Manufacturers (KAM) has urged the government to create a stable regulatory framework to support the industry. The association emphasized the need for predictable tax policies and timely tax refunds, warning that continuous uncertainty is stifling business expansion and job creation.
As Kenya grapples with these economic hurdles, calls for strategic policy interventions continue to grow. Without urgent measures, more businesses could follow suit, worsening unemployment rates and slowing economic recovery.
