This archive report was first published on 14 October 2019.
On October 14, 2019, the High Court in Kenya made a significant ruling in a case involving billionaire Humphrey Kariuki, who was facing tax evasion charges.
Justice Luka Kimaru ruled that the DCI had overstepped its jurisdiction by investigating tax evasion claims, which are statutorily under the jurisdiction of the Kenya Revenue Authority (KRA) and the Asset Recovery Authority.
According to the judge, the DCI must respect the authority of other institutions in the performance of its duties.
Justice Kimaru also upheld an order directing the unfreezing of several bank accounts belonging to Kariuki's companies, Africa Spirits Limited and Wow Beverages Ltd, noting that the order to freeze the accounts was obtained illegally.
The court ruled that the DCI's application to freeze the bank accounts was not to freeze the accounts but to access and that the magistrate made a mistake in issuing an order which was not sought.
Justice Kimaru emphasized that police investigators only have the power to ask for orders to access account details but not to ask for orders to freeze an account.
He stated that in instances where police want to investigate a person's account, the holder of such account should be served at the appropriate time and notified of the reasons.
“In conducting investigations, the police must at all times respect the rights of those they are investigating. That right includes the right to enable those affected by the orders issued by the court to be heard,” ruled Kimaru.
