Thika tycoon has found himself in more trouble weeks after Flying Squad officers raided and found smuggled ethanol, 312,000 litres of illicit liquor and 21 million fake Kenya Revenue Authority stamps in his business.
The tycoon’s Thika based African Spirits Limited (ASL) is one of the largest alcohol manufacturing plants in East Africa but ironically the most leading in counterfeits and illicit liquor.
Mr Kariuki’s London-based lawyers describe him as a “venture investor” and say he neither holds directorship nor managerial positions at the company.
However, Kenya Revenue Authority and police said a liquor firm associated with him could have dodged taxes amounting to Sh6 billion.
The money was calculated based on the number of stamps that African Spirits Ltd officially picked up from the KRA over the years but it has yet to remit the taxes from the products sold.
Kenya Revenue Authority (KRA) has obtained orders freezing 11 accounts associated with businessman Humphrey Kariuki over alleged tax evasion amounting to Sh3 billion.
The accounts are scattered in seven banks, including Equity, National Bank of Kenya and Kenya Commercial Bank (KCB), and are linked to three companies associated with Mr Kariuki.
KRA, through lawyer Kenneth Kirugi, told Justice John Onyiego that preliminary investigations indicated that the companies – Vow Beverages Limited, Wines of the World Ltd and African Spirits Ltd – had evaded tax amounting to Sh3 billion.
Documents filed in court indicated the companies had been supplying excisable goods with counterfeit exercise stamps.
The taxman further alleged the companies had fraudulently denied the agency collection of colossal amounts of tax. Justice Onyiego certified the case as urgent and directed Mr Kirugi to serve the documents to the companies ahead of the hearing on March 8.
He issued orders prohibiting the transfer, withdrawal or disposal or dealing with money in the said accounts, pending hearing and determination of the case.
The investigation started when a lorry that was carrying illicit ethanol, hidden under sacks of maize,was stumbled upon by KRA officials in what they say is one of the biggest finds: A multibillion racket that officials say could amount to Sh6 billion of lost revenue.