DPP Haji to prefer tax evasion charges against billionaire Humphrey Kariuki, others

Director of Public Prosecutions Noordin Haji (PHOTO: FILE)

Eleven employees including directors of Africa Spirits/WOW beverages face charges of tax evasion amounting to over Sh41 billion and being in possession of counterfeit stamps among others.

The Director of Public Prosecutions Noordin Haji says he has gathered sufficient evidence to prosecute Humphrey Kariuki Ndegwa and Stuart Gerald (Directors WOW beverages), Peter Njenga Kuria (Director Africa Spirits), Robert Thinji Murithi (Director WOW beverages, Geofrey Kinoti (Director Africa Spirits).

Others to face the seven separate charges include Sethu Prabhu (Assistant production manager Africa Spirits), Eric Nzomba (Driver), Kepha Gakure (Tax manager Africa Spirits).

The preferred charges also include being in possession of excisable goods affixed with counterfeit excise stamps, failing to pay tax, and fraud in relation to tax.

The DPP avers that on January 30, the officers from DCI received information that a truck was suspected of transporting uncustomised goods. After conducting surveillance, the officers trailed the truck and the trailer to the premise of Africa Spirits/WOW Beverages where they intercepted it.

Immediately thereafter, a multi-agency team comprising officers from DCI and KRA conducted a joint operation in the presence of the said company employees and found 80 drums of suspected uncustomised ethanol.

On January 31, the multi-agency team in the presence of the company employees collected samples of the consignment whose test has proved to be ethanol spirit.

“KRA audit has revealed that Africa Spirits/WOW beverages had evaded payment of tax in the amount of over Sh41 billion between the period of 2014 and 2019,” says Haji. “In addition, the audit revealed that there was evidence of tampering with the production system at the Africa Spirits factory that led to the submission of false declaration to KRA,” he adds.

As part of the investigation, DPP says the multi-agency team also found counterfeit excise stamps containing 24,000 pieces. Further, there were 41703 cartons containing over 1 million assorted alcoholic drinks affixed with counterfeit excise stamps.

He says this necessitated further investigation, which revealed an elaborate tax evasion and money-laundering scheme.

Part of the letter signed by Noordin Haji (PHOTO: Courtesy)

Humphrey Kariuki, the director of WOW beverages implicated in the fraud burst into the business scene with Nairobi's Green Corner Restaurant, a far cry from his his multi-billion-shilling empire.

In September 2018, Dalbit Petroleum which is associated with him won UN tender worth Sh 796 million deal to fuel United Nations' planes in Uganda and Democratic Republic of Congo (DRC).

An article appearing in Forbes magazine lists Dalbit Petroleum as one of the businesses Kariuki has built over the last three decades. Others include The Hub - a premier shopping mall located in Karen, Nairobi; Africa Spirits, Kenya’s leading manufacturer of Alcoholic beverages; and Great Lakes Africa Energy, a U.K-based company that is a developer and operator of power projects in Southern Africa.

“These businesses collectively employ more than 3,000 Kenyans and foreign nationals,” reads the Forbes article.

 Kariuki also the owner of the 5-star Fairmont Mount Kenya Safari Club, and the neighboring Mount Kenya Wildlife Conservancy and Animal Orphanage.

Mr Kariuki acquired the Animal Orphanage from its American owners years ago.