Court quashes order to probe Kariuki firm accounts in Sh41bn tax evasion case

Monday, October 14th, 2019 13:47 | By

High Court has quashed orders to probe Thika-based Africa Spirits Limited plant, linked to businessman Humphrey Kariuki, accounts in Sh41 billion tax evasion case. 

Justice Luka Kimaru ruled that the mandate to investigate tax matters lies with the Kenya Revenue Authority (KRA) and not the Directorate of Criminal Investigations (DCI).

The judge observed that the DCI had over-reached its mandate by purporting to probe tax-related matters.

The court also upheld an order directing the unfreezing of several bank accounts of firms associated with Kariuki.

Judge Kimaru noted that the order to freeze the bank accounts was obtained illegally since it was never sought in the application lodged by the Director of Public Prosecutions (DPP) and the DCI.

The court ruled that Africa Sprits Limited, which was represented by a team of lawyers led by Cecil Miller had proven that other firms associated with Kariuki whose accounts were illegally frozen were never served with the order as required.

“The respondents (DPP) cannot benefit from an outright illegality,” Kimaru ruled.

He noted that a court in Kiambu where the illegal freeze order was obtained had jurisdiction to correct the irregularity which it did.

He went ahead to uphold the order to keep the accounts accessible.

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