The government of Kenya has dissolved 23 investment companies started by previous county governments.
The Registrar of Companies issued orders dissolving the firms, which were formed amid much fanfare by country administrations and tasked with attracting billions in investment, in a gazette notice last Friday.
The dissolution will also prompt an audit of all the affected companies, with their individual accounts frozen pending further directions from the government.
The investment companies were expected to profile the respective counties as suitable investment destinations, help incoming investors to acquire land and necessary regulatory approvals as well as licenses to launch operations.
The companies were also mandated to engage in public-private partnerships on behalf of the county governments and where necessary to own and operate businesses on behalf of the counties.
The companies were also to approach local and foreign investors on behalf of their home counties to solicit for funding for viable public projects on a build-own-operate model as county governments are not allowed to engage in any commercial activity.