Kenya’s Business Landscape Shaken as Firms Close Doors in 2025
By Malticks - December 20, 2025
The trend, spanning multiple sectors, underscores the challenges that companies face in sustaining operations amid economic pressures and legal obligations.
Throughout the year, the Registrar of Companies, under the Ministry of Investments, issued several gazette notices announcing firms slated for dissolution.
Throughout the year, the Registrar of Companies, under the Ministry of Investments, issued several gazette notices announcing firms slated for dissolution.
One of the most significant updates, issued by Registrar Damaris Lukwo, revealed that 742 companies were set for compulsory strike-off.
Businesses targeted included inactive entities, those unable to meet statutory obligations, firms that had completed their purpose, or those suffering mismanagement, shareholder disputes, or debt-related insolvency.
Companies failing to respond to the notices risked losing their legal capacity to conduct business, enter contracts, or operate bank accounts.
Earlier in the year, 202 companies had already been dissolved, with additional firms placed on notice for self-dissolution. Subsequent notices saw 109 companies officially struck off on October 3, alongside 74 voluntary closures under the Companies Act.
Earlier in the year, 202 companies had already been dissolved, with additional firms placed on notice for self-dissolution. Subsequent notices saw 109 companies officially struck off on October 3, alongside 74 voluntary closures under the Companies Act.
This ongoing clean-up highlights the government’s commitment to maintaining a transparent and compliant business registry.
Beyond regulatory-driven closures, several high-profile companies formally exited the Kenyan market.
Beyond regulatory-driven closures, several high-profile companies formally exited the Kenyan market.
CMC Motors Group, a key player in automotive and agricultural machinery, announced on January 17, 2025, that it would cease operations in Kenya, Uganda, and Tanzania after more than 40 years, citing unsustainable operational costs.
Similarly, D.T. Dobie, a longstanding automotive firm, was placed under liquidation by the High Court, bringing an end to over 75 years of service in Kenya.
Its assets had previously merged with CFAO Motors Kenya in 2023, allowing continued provision of vehicle brands, servicing, and spare parts.
In the energy sector, Caltex House Service Station Limited was listed for dissolution in June 2025 under Gazette Notice No. 7420, reflecting its exit from a decades-long presence in Kenya.
In the energy sector, Caltex House Service Station Limited was listed for dissolution in June 2025 under Gazette Notice No. 7420, reflecting its exit from a decades-long presence in Kenya.
Meanwhile, Bank Al-Habib Ltd (BAHL) voluntarily closed its Nairobi representative office, with the Central Bank of Kenya officially cancelling its operating licence.
The move, which took effect on May 15, 2025, was part of BAHL’s strategy to streamline foreign operations and did not involve any regulatory compliance issues.
The wave of closures was further highlighted by Kenya Revenue Authority data, which indicated that 175,760 companies were no longer on its active register by mid-2025.
The wave of closures was further highlighted by Kenya Revenue Authority data, which indicated that 175,760 companies were no longer on its active register by mid-2025.
