Background
- Humphrey Kariuki is a prominent Kenyan businessman.
- He has investments in various sectors, including alcohol production.
African Spirits Limited Raid
- On January 31, 2019, Kenyan authorities raided African Spirits Limited in Thika.
- This company is owned by Kariuki.
- The raid was a joint operation involving:
- The Police
- The Department of Criminal Investigations (DCI)
- The Kenya Revenue Authority (KRA)
- The elite police Flying Squad
Findings from the Raid
- Authorities discovered:
- 21 million counterfeit excise stamps
- 22,000 liters of ethanol stored in 80 plastic drums
- 312,000 liters of illicit alcohol
- Ingredients valued at approximately $12 million USD
- The plant manager was arrested.
Statements from Authorities
- Inspector General of Police Joseph Boinnet stated:
- The operation confirmed suspicions of massive tax evasion.
- The company was manufacturing counterfeit products, posing a danger to consumers.
- There were hints of smuggling illegal ethanol through Tanzania.
Financial Implications
- The KRA estimated a potential loss of about Sh3 billion ($29 million USD) in excise taxes monthly due to the company\’s activities.
Kariuki\’s Profile
- Kariuki is considered a multi-billionaire in Kenya.
- He started as a used car salesman.
- Founded Janus Continental Group (JCG), with holdings in:
- Energy
- Real Estate
- Hospitality
- Conservation
- African Spirits Limited is not part of JCG.
Ongoing Investigations
- Authorities are pursuing Kariuki and the entire board of directors of African Spirits Limited.
- The investigation includes:
- Tracing the path of smuggled ethanol into Kenya
- Determining the ingredients used in the liquors produced
Recent Related Incidents
- On October 2, 2021, KRA intercepted 1,915 cartons (38,200 bottles) of Star Vodka with counterfeit excise stamps.
- The consignment was intercepted along the Eastern Bypass in Nairobi County.
- The tax implication was KShs. 3,447,550.
- The driver and the factory owner were arrested and arraigned in court.
- On March 28, 2022, KRA intercepted 1,000 cartons of People Vodka with counterfeit excise stamps.
- The consignment was intercepted along the Nairobi-Nakuru highway in Nakuru County.
- The tax implication was over one million shillings.
- The driver was arrested and charged.
- The legal proceedings against Kariuki and his associates are ongoing.
- The outcome of these cases will have significant implications for Kenya\’s business community.
