Kenyan Firms Face Surge in Liquidations and Bankruptcies

At least 40 companies sought voluntary liquidation or bankruptcy in the nine months to March 2026, a sharp rise from 24 the year before, according to Business Registration Service data.

Voluntary liquidations jumped 55.6 percent to 14, while bankruptcy applications soared 73.3 percent to 26, driven by weak demand, delayed payments, and cash shortages despite improving macro conditions like a stable shilling and falling interest rates.

New business registrations remained steady at 109,350, but the World Bank cut Kenya's 2026 GDP forecast to 4.3 percent amid debt pressures and rising poverty risks.