Disquiet on Kenya’s business environment as 109 firms removed from companies register

News of companies put on the chopping board by the Registrar of Companies and those opting to fall off the register of companies is no longer shocking the public.

In a trend that has been gathering traction in the past few years, companies, of which a good number are briefcase companies, are being forced off the register of companies, while others, either following legal channels or fearing being put on the chopping block, are opting for dissolution.

The latest round of 109 companies, which were chopped off the register on October 3, in a gazette notice by the Deputy Registrar of Companies, triggered another round of worry and concern at the general health of the economy.

Concurrently, another 74 companies applied to voluntarily dissolve and play by the law, Companies Act, Cap. 486.

In the gazette notice, the Deputy Registrar of Companies, Hiram Gachugi, declared that, “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.”

The Deputy Registrar of Companies announced that the companies ceased to operate in the country effective September 29, 2025. The listed firms featured companies from a variety of sectors including hospitality, general merchants, real estate, hospitality, consultants, logistics, construction, and IT.

Simultaneous to this announcement of 109 firms struck off the list of companies, was the news that the Registrar of Companies had issued a notice indicating that further 81 firms had filed for self-dissolution and by the end of the year could be deregistered if subject to no objection within three months.

“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,” the notice read.

Prior to this latest round of companies being knocked off the register of companies this year, on September 6, 2025, Gachugi issued a notice that 74 firms were to be deregistered, subject to no objection by the end of November 2025.

Gichuhi stated that the move is in line with Section 897 (3) of the Companies Act. Then, a further 78 companies were put under notice for dissolution, putting the life of more firms on the line.

On January 3, 2025, a notice by the Registrar of Companies, Joyce Koech, indicated that 202 companies had been officially dissolved.

It read, "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 off the Register of Companies with effect from the date of publication of this notice," the notice read.

However, the registrar of companies fell short of declaring the specific reasons for the dissolution of the companies, which were divided across various sectors and industries.

In addition to the 202 companies put on notice for dissolution, the registrar put another 116 businesses on notice for intended self-dissolution.

By the end of Financial Year 2024/25, over 2,260 Kenyan firms had applied to wind up and this marked a 24.3% increase from the previous FY2023/24.

On the other hand, within the same period, 25 firms had been compulsorily dissolved.

At around the same time, the Kenya Revenue Authority reported that 175,760 companies were no longer on their radar for the year ending June 2025, indicative of either dormant or inactive businesses as opposed to formal closures.

This was a rise in the number of moribund companies, which had jumped up from 143,503 non-filers in the previous year. This could signify an increase in dormant or inactive businesses, potentially due to a constricted business environment, tax evasion, or briefcase businesses solely registered for one-off ventures or seasons, to be awarded public sector contracts.

Some well-known companies in Kenya have since dissolved their local operations

Since the year began, a number of well-known companies in Kenya have closed shop. Some of these are the CMC Motors Group, which ceased all operations in the region, Kenya, Uganda and Tanzania on January 17, 2025, after being a leading company in the region for the last 40 years.

The CMC Motors Group cited rising operational costs that made its operations unsustainable. After decades of providing motor oils and fuel to the region and specifically Kenya, Caltex House Service Station Limited is set to be dissolved on June 5, 2025, according to a Gazette Notice No. 7420 by the Registrar of Companies.

The notice specified that Caltex House Service Station Limited (Company No. C. 12484) would be struck off the official register in three months unless objections are raised.

Another familiar name within motoring circles, D.T. Dobie, one of Kenya’s oldest automotive firms, was officially wound up as a corporate entity after being placed under liquidation by the High Court.

The court appointed Mark Gakuru, the official receiver, and creditors were directed to submit their claims by September 15, 2025 and with this, the end of a 75-year run in Kenya.

However, since 2023, D.T. Dobie’s assets and operations have been consolidated with CFAO Motors Kenya, and since then, CFAO Motors has continued to provide the vehicle brands, servicing, and parts that D.T. Dobie was known for.

The 2025 Economic Survey clearly indicated the dominance of the Informal Sector within the labour market.

The informal sector was the primary driver of job growth in Kenya, creating the vast majority of new jobs in 2024.  

Why are firms deregistered?

In many instances, companies are deregistered because of prolonged inactivity, while there are those that voluntarily apply for closure. In the event a firm is dissolved, its assets. 

If not relinquished before its dissolution, it might become bona vacantia, or “ownerless.” In such a scenario, the state has the first privilege claim on whatever assets have been left floating. 

So, to mitigate this, companies are generally advised to distribute their assets before dissolution. 

Many economists are of the idea that companies are going under in Kenya due to a challenging business environment characterized by high operational costs, including taxes and interest rates, unpredictable government policies, and fierce market competition. 

This creates financial strain, leading to company closures and job losses, as demonstrated by the recent exits of major multinational and local companies.