This archive report was first published on 24 September 2019.
On September 24, 2019, the government launched an investigation into tax evasion by African Spirits, Wow Beverages, and their associates. The probe has now linked the companies to money laundering.
According to an affidavit by DCI officer Shem Njeru, the investigation into tax offences revealed large sums of money movement in various companies, including Axis Logistics Limited, a shareholder of African Spirits Limited.
Our investigations also revealed that African Spirits, Wow Beverages, and their associates may have possibly been involved in the commission of money laundering offences, Njeru said.
The officer obtained an order from Kiambu courts on August 19 to freeze funds held in KCB and National Bank for a period of 90 days. However, the order was later contested by the companies and lifted, but the Director of Public Prosecutions and DCI opposed the decision.
The documents filed in court by Njeru also revealed that African Spirits comprises various shareholders and directors, including Signature Wines Limited, Kigumba Limited, Peter Njenga Kuria, Axis Logistics Limited, and Geoffrey Kinoti.
From records obtained from the office of the Attorney General and the Department of Justice, Kigumba Limited, appearing as a shareholder of African Spirits, is managed by Humphrey Kariuki, Nyawira Wangari Ndegwa, and Kisima Management Company Limited. They are listed as directors and shareholders, the documents read.
Wow Beverages comprises Humphrey Kariuki, Robert Thinji, Stuart Gerald, and Peter Njenga Kuria as shareholders. The DCI has listed several companies, including Signature Wines Limited, Golden Valley Properties Limited, Gemtal Limited, Kigumba Limited, and Axis.
The shareholders and directors of the companies, according to Njeru, are the same persons and some are of blood relations.
It is alleged that they failed to pay taxes amounting to Sh17.7 billion between February 1, 2016, and December 31, 2018. They also allegedly failed to remit VAT on different dates.
