Data shows business owners are increasingly shutting down companies in response to intensified enforcement measures by the KRA and tighter regulatory demands.
Records from the Business Registration Services (BRS) reveal that 56 firms were dissolved last month and another 118 are set to be struck off by the end of October.
This trend aligns with KRA’s rigorous tax compliance efforts, including stricter disclosure rules for beneficial ownership – breaches of which incur severe penalties.
BRS reports that many companies are opting for dissolution due to tax obligations imposed on dormant businesses, shareholder resolutions after fulfilling their business purposes or in response to KRA’s demands for outstanding taxes.
