From Billionaire to Broke: The Fall of Humphrey Kariuki’s Empire

Once Kenya’s Most Controversial Tycoon Now Faces Financial Ruin as Flagship Company Enters Administration

NAIROBI, Kenya – In a dramatic fall from grace that mirrors the country’s ongoing crackdown on tax evasion, billionaire businessman Humphrey Kariuki’s once-mighty business empire appears to be crumbling, with his flagship alcoholic beverages company now under administration and facing potential liquidation.

Africa Spirits Limited, the Thika-based distillery that was once one of Kenya’s largest local alcohol producers, was officially placed under administration on June 17, 2025, marking what could be the final chapter in Kariuki’s tumultuous six-year battle with tax authorities.

Peter Kahi of PKF Consulting (K) Limited has been appointed as administrator, effectively stripping Kariuki and his directors of all powers over the company’s assets and operations.

The appointment comes with a stark warning: “None of the directors, shareholders, employees or any other person is authorised to transact any business on behalf of the Company without express written consent from the Administrator.”

The Beginning of the End

The downfall began in January 2019 when the Kenya Revenue Authority (KRA) conducted a dramatic raid on Africa Spirits’ Thika factory, accusing the company of large-scale tax evasion through fake excise stamps and failure to declare the full volume of alcohol produced.

The taxman claimed Africa Spirits had denied the government over Sh41 billion in taxes – a staggering sum that would haunt Kariuki for years.

The raid led to the seizure of goods and machinery worth billions of shillings, with investigators discovering an estimated 21 million counterfeit excise stamps and 312,000 litres of illicit products.

Kariuki, along with several company officials, was charged with tax fraud, possession of counterfeit excise stamps, and being in possession of uncustomed goods.

A Brief Reprieve

There was momentary hope in December 2022 when KRA handed the factory back to Kariuki, just days after newly elected President William Ruto appointed him to the National Investment Council.

The timing raised eyebrows, with critics questioning whether political connections had influenced the decision.

However, sources told the Nation that reopening the liquor business was “an unlikely option because of the mega resources it would require to do so.”

The company had remained shuttered for nearly four years, with its production lines gathering dust while legal battles raged in the courts.

The Empire Under Siege

Once estimated to be worth between $700 million to $1 billion, Kariuki built his empire quietly over four decades, spanning power generation, hospitality, and real estate.

His business interests include Dalbit Petroleum, Great Lakes Africa Energy, luxury hospitality assets such as The Hub Karen, and the Mt. Kenya Wildlife Conservancy.

The Hub Karen alone, co-developed in 2016, was valued at KSh 4 billion and features anchor tenants like Carrefour and Java House, serving as a key commercial hub in Nairobi’s affluent Karen suburb.

But the tax troubles have cast a shadow over his entire business portfolio.

Despite his high profile and philanthropic activities, Kariuki’s empire has been repeatedly dogged by scrutiny from tax authorities and anti-corruption agencies, with his KRA troubles serving as a flashpoint in Kenya’s broader crackdown on tax cheats.

The Administration Gambit

With Africa Spirits now under administration, Kahi’s mandate will be to assess the financial position of the company, negotiate with creditors, and potentially restructure the business to avoid liquidation.

Kahi has a reputation for handling high-profile corporate collapses, having previously overseen the administration of Nakumatt Supermarkets and Mumias Sugar Company.

Creditors have been instructed to submit any claims by July 18, 2025, though it remains unclear whether the firm can survive given the magnitude of its legal and tax liabilities.

The brands that once rolled off Africa Spirits’ production lines – including Bluemoon vodka, Legend Brandy, Furaha Vodka, and Gypsy King Gin – may never see the light of day again.

A Cautionary Tale

In 2020, Kariuki briefly fled the country before returning to face charges, with his legal team arguing that the accusations were politically motivated and based on flawed audits.

However, court proceedings have continued intermittently, with the company unable to resume full operations.

The billionaire’s fall from grace serves as a stark reminder of Kenya’s evolving business landscape, where tax compliance has become non-negotiable regardless of one’s wealth or political connections.

What was once a business empire built over decades now hangs in the balance, with creditors circling and liquidation a real possibility.

As the public and stakeholders have been asked to direct all communications to the administrator’s office, the future of Africa Spirits Limited – and whether it can rise from the ashes of legal battles and financial collapse – remains uncertain.

For Humphrey Kariuki, the man who once moved in the shadows building a billion-dollar empire, the spotlight now shines harshly on what may be the final act of his business career.