Kenya Revenue Authority (KRA) commissioner-general John Njiraini is embroiled in a legal battle over control of Space & Style Limited, a roofing materials company valued at Sh1.3 billion. The dispute involves allegations that Njiraini holds shares through an offshore entity and accusations of tax-related harassment.
The conflict, initially filed in the Commercial Court, has escalated to the Constitutional Division. One shareholder, Njama Wambugu, claims Njiraini used his position as KRA head to intimidate him, alleging the tax authority has imposed excessive tax demands as retaliation.
Wambugu alleges Njiraini’s interest in Space & Style is held via Decamis Limited, an offshore company registered in Hong Kong. He has also filed a separate suit against KRA, seeking to block what he calls unlawful tax inquiries and demands.
The legal proceedings reveal tensions over the company’s ownership. Wambugu, who held 47,500 shares in 2002, agreed to sell them to Wainfrida Wanjiku Ngumi in 2017 for Sh250 million. Disputes arose after valuation reports conflicted, leading to a share transfer that Wambugu claims violated his exit clause.
Ngumi, who now holds majority shares, argues the transfer was voluntary and has requested the court to dismiss Wambugu’s claims. She also seeks to prevent restrictions on the company’s bank account signatories, warning such measures could disrupt operations.
In January 2019, Justice Aaron Makau referred the dispute to arbitration but temporarily barred Ngumi from altering the company’s bank signatories. Ngumi and her allies have since appealed to the Court of Appeal, contending no valid dispute exists for arbitration.
