Ukwala Supermarket Listed Among 32 Companies Facing Dissolution in Kenya

Ukwala Supermarket Limited, once a prominent retail store in Nakuru, is among 32 companies slated for dissolution by the Registrar of Companies. This announcement, made on Friday, October 11, raises serious concerns about job losses and economic stability for many Kenyans who rely on these businesses for their livelihoods.

Key Highlights:

Ukwala Supermarket and 31 other companies are set to cease operations by December 2024.
Thousands of jobs are at risk, impacting families and local economies.
The Registrar has invited any objections against the dissolution to be submitted within three months.

A long-standing debt crisis

Registrar of Companies Joyce Koech confirmed that these companies would be struck off the Register of Companies effective December this year. This dissolution comes as a devastating blow to the employees and stakeholders associated with these businesses. Koech urged any individuals or entities with opposing reasons for the dissolution to present their case in accordance with the Companies Act.

“Pursuant to Section 897(3) of the Companies Act, the Registrar of Companies gives notice that the names of the companies specified hereunder shall be struck off from the Register of Companies. This follows the expiration of three months from the date of publication of this notice,” she stated.

Ukwala Supermarket’s troubles began in February 2019, when it sought a court order for liquidation due to a staggering Ksh1 billion debt owed to creditors. At that time, the supermarket was also struggling with an unpaid tax bill of Ksh840 million, leading to its inability to meet financial obligations to creditors, suppliers, and employees. “The company is applying to be liquidated because of its indebtedness and inability to meet its financial obligations,” said Ukwala director Vijay Jayantilal Dodhia in court documents.

Economic impact and job losses

The planned dissolution of Ukwala and other companies is likely to have a significant economic impact, potentially leading to job losses for thousands of Kenyans who depend on these businesses. As one of many retail outlets that have closed in recent years, Ukwala adds to a troubling trend that includes the demise of other notable chains such as Uchumi, Tuskys, and Nakumatt Supermarkets.

A Worrisome trend in company dissolutions

The announcement is particularly concerning, given that just last month, Koech issued a similar notice regarding the dissolution of another 32 companies. This continuous wave of closures raises questions about the stability and health of the retail sector in Kenya. Many employees and consumers are left uncertain about their futures, with the possibility of further economic decline looming over them. As the situation unfolds, the public eagerly awaits clarity on how these dissolutions will affect their lives and the broader economy.