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Thousands of Kenyans face job losses as 116 companies dissolved and another 115 have fired a warning shot that they will close shop within three months.

The companies ranging from manufacturers, chain stores, Information and Communication Technology (ICT) and other service industries have rendered thousands of Kenyans jobless and more are yet to be laid off.

The developments reflect a challenging business environment in Kenya with the layoffs hitting households hard as the country continues to grapple with a high unemployment rate. According to a Kenya Gazette Notice. 94 dated January 3, 2024, the Register of Companies Joyce Koech listed several companies that had been dissolved in December last year.

“Pursuant to section 897 (4) of the Companies Act, 2015, it is notified for information of the general public that the following companies are dissolved and their names have been struck of the Register of Companies with effect from the date of publication of this notice,” reads part of the gazette notice.

Among the companies that have dissolved, include Chandarana Investment Limited, Afsol Energy Limited, Innovate Medical Devices Limited, Phoenix Supply Chain Limited, Sunlight Industry Company (K) Limited and Walmart Wholesalers Limited. Others include Ideal Freight Kenya Limited, Kisae Education Institute Limited, Wealth Creation Limited and Taji Institute Company Limited. Names struck out The Companies Act section 897 states that on application by a company, the Registrar may strike the name of the company of the Register.

“Such an application is effective only if it is made on behalf of the company by its directors or by a majority of them and contains such information (if any) as is prescribed by the regulations,” reads part of the Act. Further, the Registrar notified the public of the intention that some 115 companies are set to close shop in the next three months.

Closure deadline Section 897 (3) of the Companies Act states that the Registrar may not strike the name of a company of the register under this section until after three months from the date of the publication by the Registrar in the Gazette.

“Pursuant to section 893 (3) of the Companies Act, the Registrar of Companies gives notice that the names of the companies specified hereunder shall be struck of from the Registrar of Companies at the expiration of three months from the date of publication of this notice,” reads part of the gazette notice.

The gazette notice further requests any person to show cause why the companies should not be struck of from the Register of Companies. “The Registrar may exercise the 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 of,” reads part of section 893 of the Companies Act.

Among the companies that have issued a notice to close shop include Jinan Con tractors Limited, Technocrat Ventures Limited, Anselm Design Limited, First Global Health Limited, Grow with Hope Foundation, Peponi Holdings Limited and Sato Management Limited. Others include: Sinbad Limited, Ramazon Limited, Sky Horse Company Limited, Synergy Overseas Limited, Sunny Irrigation Limited, Dualis Limited and Aviation Enthusiasts Limited.

The Federation of Kenya Employers (FKE) reported that 70, 000 jobs were lost in the formal private sector between October 2022 and November 2023.

The Employers body attributed the job losses to a number of factors including high interest rates, unpredictable market conditions, government policies and frequent changes in government policies and regulations.

Although the Federation proposed a fund to support businesses and workers during hard economic times, the Kenya Kwanza administration has not set up such a fund. According to FKE, the fund would have cushioned workers affected by involuntary job losses, protected cash-strapped firms hit by economic hardship, keep the hardest companies from going under and enabled workers to keep their jobs on payroll until normalcy returns.

Several firms have been sending employees packing citing a tough business environment even as the government maintains the economy has steadily improved.

Last year in November, global security firm –G4S (Kenya) in a redundancy notice, indicated that it would lay off at least 400 of its staff. The company pegged the decision on what it termed as an ongoing reduction in business trading occasioned by effects of the harsh economic challenges have led to reduction in revenue and high costs of running the business.

“We regret to advise the Ministry of Labour and Social Protection of the Organization’s intention to declare several positions redundant,” said G4S

Human Resource Director Helgah Kimanani in a notice to the Ministry which took effect on November 4. Last year, the government held firm that the economy has continued to recover in the post-Covid era, with inflation also going down to a 14-year low of 2.7 per cent in October 2024