Many workers and business owners are facing uncertainty following a new government move that could see hundreds of firms closed within a short time.
The plan, announced at the start of the year, targets more than 300 companies that may soon be removed from the official register, a step that would effectively end their legal existence.
If this happens, thousands of Kenyans employed by these firms could be left without jobs, while suppliers and clients may also be affected.
According to a gazette notice dated January 2, 2026, the Registrar of Companies, Damaris Lukwo, stated that the process of striking off the listed companies would begin in April.
The notice explained that the companies identified for removal operate across many sectors of the economy. These include consultancy services, private security, media and publishing, building and construction, transport, and general supply. Other affected businesses offer education services, electrical works, insurance-related services, internet provision, milling, branding, cleaning, and management services.
The Registrar made it clear that the move is not immediate. A period of 90 days has been provided to allow any affected person to raise concerns or explain why a company should remain on the register.
This window gives directors, shareholders, creditors, employees, and other interested parties a chance to act before a final decision is made. In the notice, Lukwo cited the Companies Act and stated that the listed firms would be struck off after three months from the date of publication if no valid reasons are presented.
The decision is part of a wider effort by the government to tighten oversight of companies operating in the country. In recent years, authorities have increased checks to ensure that businesses comply with the law and that official records are accurate. Non-compliant firms, especially those that fail to meet basic reporting requirements, have increasingly come under scrutiny.
Under Kenyan law, a company can stop operating in two main ways. It may choose to close voluntarily, following set legal procedures, or it can be removed from the register by the Registrar of Companies.
The Registrar operates under the Business Registration Services, commonly known as BRS. BRS is a state corporation that carries out its work under the Companies Act of 2015 and falls under the Office of the Attorney General and the Department of Justice.
One of the main reasons a company can be struck off is failure to file annual returns for a long period. Annual returns are important because they help the government and the public know whether a company is still active and compliant.
A company can also be dissolved if there is a court order directing that it be closed.However, not all cases are straightforward.
In some situations, the Kenya Revenue Authority may step in to stop or delay the dissolution of a company.
This usually happens when there is an ongoing tax dispute or unpaid taxes that need to be resolved before the firm is removed from the register.
Affected companies are expected to review their status and take action where necessary. For employees and business partners, the coming months may bring anxiety, but the notice also offers a chance for correction and compliance before final decisions are made.
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