KRA Takes Over Billionaire Kariuki’s Sh17B Tax Evasion Case

Prosecutors from Kenya Revenue Authority (KRA) will take over the trial of businessman Humphrey Kariuki who is facing tax evasion charges.

This was after Director of Public Prosecution Noordin Haji delegated the prosecution of the case to KRA.

Haji through Prosecutor Carol Sigei made the application after he informed the trial Magistrate Francis Andayi that three KRA prosecutors have been gazetted to handle the case.

The three prosecutors are Sheila Sandra, Peter Mwenda and Irene Muthee.

Kariuki through his lawyer Kioko Kilukumi questioned whether DPP can delegate his mandate. He argued that all prosecutorial powers belong to the office of the chief prosecutor.

“When the prosecutors are appointed, can the office of the DPP be excusesd from the case? That’s the constitutional issue we are raising,” questioned Kilukumi.

DPP on his part claimed that he has not recused fully from the tax evasion case and he will be monitoring the matter despite the case being prosecuted by the KRA.

Kariuki and seven others were charged afresh over tax evasion of more than Sh17 billion.

The businessman and his co-accused pleaded to the new charges after Andayi allowed the DPP to consolidate charges against them in two files that were pending before two different courts.

In the new charge sheet, the eight accused persons denied eleven counts of failure to pay taxes.

They are alleged to have committed the offences between 2016 and 2019. They are also accused of aiding the commission of a tax offence, fraud in relation to tax and being in possession of excisable goods affixed with counterfeit excise stamps.

Kariuki is charged alongside Peter Njenga Kuria (Director Africa Spirits Limited), Robert Thinji Murithi (director, WOW Beverages), Geoffrey Kaaria (Director Africa Spirits Limited), Kepha Gakure (tax manager, Africa Spirits) and Simon Maundu.

Prosecution has also preferred charges against Africa Spirits Limited and WoW Beverages Limited.

They are accused that between tax periods covering February 1,2016 and December 31,2018 being the directors of Africa Spirit limited a licensed excise duty manufacturer and registered tax payer chargeable to tax failed to pay taxes amounting to Sh 17782 ,553,085 payable to commissioner domestic taxes by the due dates as required under the excise duty act.

Prosecution also alleges that between January 31 and February 8, 2019 at African spirits limited and WOW Beverages limited premises within Thika town in Kiambu county, the accused persons jointly were found in possession of 894 reels of counterfeit excise stamps acquired without the authority of the KRA Commissioner.

The eight are also accused that on the same date and place they were jointly found in possession of 1,251,090 bottles of assorted alcoholic beverages affixed with counterfeit excise stamps packed in 41,703 cartons

The accused persons further were further charged that between January 1 and December 31,2016 knowingly omitted from the return of excise for Africa spirit limited Sh 2,022,340,210 which ought to have been included in the said returns.

All were release after depositing in court Sh22 million bond each with a surety of a similar amount or paid an alternative cash bail of Sh 11 million each.

An investigation on the two firms started in january 2019 when the Director of Criminal Investigations George Kinoti led detectives in a major raid at factories located in Thika where over Sh 21 million counterfeit excise stamps and 312,000 litres of illicit products.

An audit by KRA further revealed that the production system at the Africa Spirits Limited factory plant in Thika had been tampered with, leading to the submission of false tax declarations.