This archive report was first published on 15 October 2019.
On October 15, 2019, a Kenyan court dealt a significant blow to the Director of Criminal Investigation's (DCI) role in tax evasion investigations, ruling that the agency overstepped its bounds in freezing the bank accounts of businessman Humphrey Kariuki.
The court, led by Justice Luka Kimaru, quashed the freeze orders, allowing Kariuki to continue manufacturing and processing alcohol. The decision came after the DCI obtained orders on August 16, 2019, to freeze the bank accounts of nine companies linked to the tycoon.
The companies, including Africa Spirits Limited and Wow Beverages Limited, had their accounts frozen in connection with allegations of tax evasion amounting to Ksh41 billion, which Kariuki has denied.
Cecil Miller, the legal council representing the companies, argued that the taxman and other relevant government agencies are the only legally statutory bodies enabled to handle issues relating to tax and recovery of assets bought using proceeds from fraud.
