Since objects are singletons, they have a single static instance. So if you give them a context property, you're still storing a Context in a static way.
This will have the exact same consequences as putting a Context in a static field in Java.
If you write the equivalent code that Kotlin generates for an object in Java, it will actually result in the proper lint errors:
public class Example {
// Do not place Android context classes in static fields; this is a memory leak
// (and also breaks Instant Run)
public static Context context;
// Do not place Android context classes in static fields (static reference to
// Example which has field context pointing to Context); this is a memory leak
// (and also breaks Instant Run)
public static Example INSTANCE;
private Example() { INSTANCE = this; }
static { new Example(); }
}