Kenyan detectives baffled by Ksh282 million worth Cyprus Passport in suspects hand

Related imageA raid on Mr Humphrey Kariuki’s Thika-based Africa Spirits Ltd plant by Flying Squad officers found smuggled ethanol, 312,000 litres of illicit liquor and 21 million fake Kenya Revenue Authority stamps.

Some of the popular brands produced by the plant include Bluemoon vodka, Legend brandy and Glen Rock whisky.

Kenya Revenue Authority commissioner of intelligence and strategic operations Githii Mburu, who was part of a high-powered government team that raided the factory, said the plant has not been remitting Sh3 billion in taxes every month.

Those in the team included Inspector-General of Police Joseph Boinnet and DCI head George Kinoti.

“We found about 21 million counterfeit stamps at the factory. That means the commission would have lost Sh1.2 billion. In one production shift, the amount of tax lost is about Sh93 million,” Mr Githii told reporters.Image result for cyprus

However, detectives questioning the billionaire over tax evasion were taken by surprise after it emerged that he is a citizen of Cyprus.

Cyprus is an island country in the Eastern Mediterranean and the third largest and third most populous island in the Mediterranean, located south of Turkey, west of Syria and Lebanon.

The realisation further complicates their attempts to unravel the shareholding structure of his various firms.

The Nation exclusively learnt that Mr Kariuki was questioned on the dual citizenship and on why he had not disclosed it as required by law.

Besides his Kenyan passport, Mr Kariuki travels on a Cyrus passport, number K0627485, issued on May 19, 2016.

While Kenyans have a right to become dual citizens, the Citizenship and Immigration Act declares that “every dual citizen shall disclose his or her other citizenship in the prescribed manner within three months of becoming a dual citizen”.

The law further says a citizen who fails to disclose the dual citizenship … “commits an offence and shall be liable, on conviction, to a fine not exceeding five million shillings or imprisonment for a term not exceeding three years or both.”Image result for Humphrey Kariuki

Although unrelated, the questioning of Mr Kariuki came a day after the Cyprus Cabinet announced it would tighten its citizenship for the investment scheme, which will see tycoons invest €2.5 million (Sh282 million) in exchange for a Cyprus passport.

Previously, investors would part with the equivalent of Sh226 million to become Cypriots.

Those interested will also make a mandatory donation of €75,000 to the Research and Innovation Foundation and a second €75,000 contribution to the Cyprus Land Development Corporation to be used for affordable housing.

Within the EU, Bulgaria, Cyprus and Malta are the only countries that grant investors citizenship without the obligation of physical residence.

The European Commission said on January 25, 2019 in its first report on investor citizenship and residence schemes operated by the three EU countries that such schemes may pose risks such as security, money laundering, and tax evasion, as well as lack of transparency.

Image result for Humphrey Kariuki

Mr Kariuki has, however, not been charged with any of these — and there is no evidence, at the moment, that he took his Cyprus passport for money laundering purposes or for tax evasion.

Githii added that for every 20,000 litres of smuggled ethanol, the Government loses about Sh4 million.

Kariuki, 62, is the founder of Janus Continental Group, a conglomerate that includes The Hub- a premier shopping mall in Nairobi, Africa Spirits, a leading manufacturer of Alcoholic beverages, Dalbit Petroleum, one of the largest oil distributors in East and Southern Africa, and Great Lakes Africa Energy, a U.K-based company that is a developer and operator of power projects in Southern Africa.

He is also the owner of the 5-star Fairmont MountKenya Safari Club and the neighboring Mount Kenya Wildlife Conservancy and Animal Orphanage.

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