2,260 Companies Shut Down, Proposal to Zone Land for Building Homes

Hello and welcome to the Money Weekly Newsletter, where we cover the closure of 2,260 companies.

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2,260 Companies Close Down in a Year

The number of companies that closed down in the 2024/2025 financial year increased significantly, outpacing the growth rate of new business registrations. 

Data from the Business Registration Services (BRS) reveals that in the year ending June 2025, a total of 2,260 firms applied for official closure, either voluntarily or involuntarily. This represents a 24.3% increase from the 1,817 firms that sought to cease operations in the 2023/2024 financial year.

The increase in closures has been attributed to several factors, including the challenging business environment, which has been contributed to by the new tax policies, such as the Housing Levy.

For instance, since March 2024, employers are legally required to deduct 1.5% Housing Levy from an employee's gross monthly pay and match that amount. Equally, there have been increased rates for the National Social Security Fund (NSSF) contributions.

As a result, firms are required to match their employees' contributions, which has further increased the cost of doing business, especially for top-earning employees.

Firms that closed down also cited increased tax disputes with the Kenya Revenue Authority (KRA), dwindling customer numbers, and increased operational costs. 

On the flipside, despite the increase in closures, the number of new companies being registered is still on an upward trend, albeit marginally. In the year to June 2025, 138,000 new firms were registered, a slight increase of 1.3% from the 136,209 registered in the previous year.

Here is a quick recap of the top money news for the week:

Proposal to Zone Land for Building Homes 

Westlands MP Timothy Wanyonyi, on Wednesday, September 24, filed a motion that seeks to push the government to introduce a comprehensive land use policy that would zone agricultural land and separate it from areas designated for development. 

This proposal, if adopted, could block the subdivision of agricultural land for residential and commercial purposes. Read more.

Catch Up on More News

WEEKLY MONEY TIPS

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How Growing Up in Poverty Affects Your Money Habits

Many of the money habits we carry into adulthood are shaped by the experiences we had as children,often without us realizing it. If you grew up in an environment where money was always tight, chances are you developed a scarcity mindset. This way of thinking trains your brain to expect lack, avoid risks, and fear financial change, even when your circumstances improve.

But mindset is more powerful than income or knowledge when it comes to long-term financial success. Shifting from a scarcity mindset to one of abundance can change everything.

In this video, we explore how early experiences shape your relationship with money, how to recognize the signs of a scarcity mindset, and practical steps to rewire your thinking for abundance.

@money254hq

𝐇𝐨𝐰 𝐆𝐫𝐨𝐰𝐢𝐧𝐠 𝐔𝐩 𝐢𝐧 𝐏𝐨𝐯𝐞𝐫𝐭𝐲 𝐀𝐟𝐟𝐞𝐜𝐭𝐬 𝐘𝐨𝐮𝐫 𝐌𝐨𝐧𝐞𝐲 𝐇𝐚𝐛𝐢𝐭𝐬 Many of the money habits we carry into adulthood are shaped by the experiences we had ... See more

That’s a wrap for this week’s Money Weekly!

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