This archive report was first published on 7 October 2019.
Billionaire Humphrey Kariuki's Tax Evasion Scandal ¶
Published on October 7, 2019
Humphrey Kariuki, a reclusive Kenyan billionaire, was charged with nine counts of tax evasion amounting to Sh17 billion in 2019. The charges were met with skepticism, with many, including Kariuki himself, terming it a witch-hunt.
At the time, Kariuki was hiding outside Kenya and held dual citizenship of Cyprus. He was listed on the Interpol's red list by the DCI Kinoti, according to media reports. However, Kariuki voluntarily resurfaced in Kenya to answer the charges in court.
Kariuki has vehemently denied the tax evasion accusations, claiming the charges are malicious and an attempt by his business rivals to tarnish his name. However, an investigation by the International Consortium of International Journalists (ICIJ) in 2016 revealed that Kariuki was listed in the Panama Papers, a massive leak of documents that exposed the secretive industry of offshore finance.
The Panama Papers revealed that Kariuki was a shareholder in Belgravia Services, a company registered in Seychelles with a physical address in Cyprus. This is a common practice known as tax avoidance, where companies register in countries with lower tax rates and then trade as foreign firms to avoid corporate tax.
Despite the revelations, the Kenyan government has failed to investigate further, and Kariuki's company, Belgravia Services, remains active to date. The government's inaction has raised questions about its commitment to tackling tax evasion and corruption.
As the Kenya Revenue Authority (KRA) continues to hunt down tax cheats, it is essential that they apply the laws equally and not just target mobile transactions. Those using tax havens, like Kariuki, need to be dealt with equally to ensure that the laws are applied fairly and that corruption is tackled effectively.
