Kenya’s business environment in 2025 was characterised by a steady wave of company closures, deregistrations and market exits, driven largely by regulatory enforcement and changing commercial realities.

Throughout the year, the government, through the Registrar of Companies, published multiple gazette notices detailing firms slated for dissolution, alongside announcements of high-profile companies winding up operations.

The developments reflected both compliance-driven removals from the companies’ register and the formal exit of long-standing players from key sectors of the economy.

Regulatory-driven dissolutions and strike-offs

A significant portion of the closures recorded in 2025 stemmed from statutory action by the Registrar of Companies. In one of the most notable notices, the government announced through the Registrar of Companies, Damaris Lukwo, that 742 companies were set for dissolution. The three-month notice warned that most of the companies would be struck off the register in February next year unless valid objections were raised.

“Pursuant to section 897 (3) of the Companies Act, 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 this publication and invites any person to show cause why the companies should not be struck off from the Register of Companies,” the notice read in part.

According to the Registrar, companies targeted for dissolution included those that had completed their intended purpose, become inactive, or failed to meet statutory obligations.

Other grounds cited under business law included inability to pay debts, shareholder stalemates, mismanagement and breaches of legal requirements. Once struck off, companies lose the legal capacity to conduct business, enter contracts or operate bank accounts.

The dissolution process typically followed a defined legal path, beginning with warning letters, followed by a gazette notice announcing the intended strike-off, and concluding with formal deregistration.

Earlier in the year, a notice dated January 3, 2025, indicated that 202 companies had already been dissolved, while another 116 were placed on notice for intended self-dissolution. Additional notices later in the year saw 109 companies struck off on October 3, alongside 74 firms that applied for voluntary dissolution in compliance with the Companies Act.

Well-known companies closing operations

Beyond regulatory strike-offs, several established companies formally shut down or exited the Kenyan market.

CMC Motors Group

CMC Motors Group, a major player in the automotive and agricultural machinery sector, announced on January 17, 2025, that it would cease operations in Kenya, Uganda and Tanzania after more than 40 years in the region. The company cited rising operational costs that had rendered its business unsustainable.

D.T. Dobie

Another long-standing automotive firm, D.T. Dobie, officially shut down as a corporate entity after being placed under liquidation by the High Court. The court appointed Mark Gakuru as the official receiver and directed creditors to submit their claims by September 15, 2025.

The move marked the end of D.T. Dobie as a standalone company after more than 75 years of operation in Kenya. However, its assets and operations had been merged with CFAO Motors Kenya in 2023, allowing continued provision of vehicle brands, servicing and spare parts under the new structure.

Founded in 1949, D.T. Dobie played a pivotal role in Kenya’s motor industry, notably introducing the Mercedes-Benz and Nissan brands to the market.

Caltex House Service Station Limited

In the energy sector, Caltex House Service Station Limited, which had served Kenyan motorists for decades, was listed for dissolution in a government notice issued on June 5, 2025.

Gazette Notice No. 7420 stated that the company would be struck off the official register within three months unless objections were raised. The notice was issued by Deputy Registrar of Companies Hiram Gachugi under Section 894(3) of the Companies Act.

“Pursuant to section 897 (4) of the Companies Act, it is notified for the information of the general public that 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. Bora Motors Limited and Caltex House Service Station Limited,” read the notice in part.

Bank Al-Habib Ltd (BAHL)

The Central Bank of Kenya (CBK) cancelled the operating licence of Bank Al-Habib Ltd (BAHL) following the lender’s decision to exit the Kenyan market. In a statement issued on Monday, June 30, 2025, the regulator said the cancellation took effect on May 15, 2025, after BAHL opted to close its Nairobi-based representative office as part of efforts to streamline its foreign operations.

“The Central Bank of Kenya announces the cancellation of the authority granted to Bank Al-Habib Ltd (BAHL) of Pakistan to operate the BAHL Representative Office in Kenya, under Section 43 of the Banking Act,” CBK said, noting that the exit was a strategic business decision and not the result of any regulatory or compliance violations.

BAHL had operated a representative office in Kenya since April 9, 2018, where it served as a marketing and liaison point for the Karachi-headquartered bank and its international affiliates, without conducting deposit-taking or lending activities.

CBK said the Kenyan office had been the bank’s only representative presence in East Africa and assured the public that the exit had been handled in line with legal and regulatory requirements, with no impact on the broader financial sector.

Wider trends and market exits

The closures occurred alongside broader indicators of reduced corporate activity. During the year ending June 2025, the Kenya Revenue Authority reported that 175,760 companies were no longer on its active radar, pointing to a large pool of dormant or inactive entities.

The cumulative effect of regulatory enforcement and voluntary exits underscored an ongoing clean-up of the companies register, as well as the formal exit of both small and well-established businesses from Kenya’s commercial landscape in 2025.