At least 40 Kenyan companies sought voluntary liquidation or bankruptcy protection in the nine months to March, up from 24 a year earlier, exposing mounting financial distress despite improving economic indicators and lower borrowing costs.
Business Registration Service (BRS) data shows companies entering voluntary liquidation rose by 55.6 per cent to 14 during the period, from nine a year earlier, while bankruptcy applications jumped by 73.3 percent to 26.
The filings indicate that lower inflation, a stronger shilling and successive interest-rate cuts have yet to ease cash flow pressures as weak consumer spending and delayed payments continue to squeeze businesses.
Voluntary liquidation allows directors and shareholders to…