Business Owner Challenges KRA’s Move To Close His Firm And Freeze Accounts

Humphrey Kariuki has put up a fight for his business empires in Thika town to defend it from the closure that was done a month ago by Kenya Revenue Authority. This was done in addition to freezing his accounts for tax evation of over Sh3 billion. Kariuki has appeared before the court seeking that his businesses be open and the freezing lifted on his accounts.

Mr Kariuki has accused KRA of laying false allegations about his multi-billion shillings businesses with the intention of causing him to lose business opportunities and paint him in bad light with his business partners globally. “There is a premeditated, well-coordinated and persistent scheme devised by KRA to malign my reputation and cause me business loss. They lied to court and brought dishonest allegations to obtain orders freezing my companies’ accounts,” said Kariuki in court papers.

He claimed the whole saga was a plot by his business rivals to cripple his companies through use of State machinery and cause him massive losses.

Kariuki described himself as an investor and venture capitalist involved in various investments in several companies in Africa and Europe.

The taxman, aided by a multi-agency team, raided Kariuki’s Africa Spirits Ltd and WOW Beverages Ltd factories in Thika town on January 31, and closed them down over allegations of tax evasion.

In addition, KRA on February 11 wrote to the Director of Immigration with instructions to stop the departure of Kariuki and other two directors of the two companies. They claimed that the individuals were trying to flee the country to escape tax liability that was amounting to Sh1.2 billion.

It obtained court orders on February 22 freezing the accounts of Africa Spirits Limited, WOW Beverages and Wines of World Limited over claims of making supplies of alcoholic beverages fixed with counterfeit excise stamps, hence denying the authority Sh3 billion in revenue.

But the businessman submitted that KRA deliberately failed to enjoin him in the suit as a director in the companies to deny him audience and mislead the court in reaching unjustified decision.

“It is also a deliberate untruth made dishonestly by KRA to obtain the court orders freezing the accounts. They know we don’t manufacture alcohol and act as importers of liquor, which they already tax before entry into the country,” swore Kariuki.

He now wants the court to rule in his favour and allow the reopening of the Thika factory and lifting the orders that froze the companies’ accounts. He also wants an order restraining KRA from further taking action to recover the alleged tax arrears.

The case is scheduled for hearing on Friday.