At least 114 companies have requested to be deregistered since the Kenya Kwanza government came to power, which could be yet another serious blow to President William Ruto and his deputy, Rigathi Gachagua.
A total of 46 firms had requested to be struck off the register, according to a notice dated September 16 and signed by Joyce Koech, the Registrar of Companies.
Following that, another letter dated September 30 revealed that 68 additional companies had also requested to be delisted.
The Registrar of Firms stated in its notification that everyone who objected to the anticipated dissolution of the companies had three months to file their concerns.
The statement comes as a number of reasons, including the recently held general elections, the current drought, and the Ukraine-Russia war that increased the price of oil globally, are still having a negative impact on Kenya’s economy. Additionally, the economy has not yet fully recovered from the pandemic’s effects.
According to the Kenya National Bureau of Statistics, the nation’s economic growth slowed for the fourth consecutive quarter, coming in at 5.2% in the second quarter of 2022. (KNBS).
6.8% growth was reported in the first quarter, while 7.4% was seen in the fourth quarter of 2021.
Poor agricultural productivity brought on by inadequate rainfall was blamed for the reduction, which is a main economic activity countrywide, as well as a spike in inflation that reduced the purchasing power.
As indicated by one of the financial specialists, deregistration of organizations is a choice of the board.
He contended that a few people decide to unwind their foundations after idleness or to dodge paying duties for misfortune making adventures.