Court now lifts freeze on tycoon Kariuki’s firms bank accounts

Africa Spirits Limited (ASL) and eight other companies owned by tycoon Humphrey Kariuki were granted temporary reprieve Monday after the High Court lifted a bank accounts freeze order terming it as a breach of law.

The orders were obtained by the Director of Criminal Investigations (DCI) from the Kiambu Chief Magistrates Court on August 16 freezing the accounts of alcohol manufacturer ASL, Wow Beverages Limited (WBL), Wow Beverages, Dalbit Petroleum, Rhine Hart, Section Investments, Janus Continental Group, Belgravia Construction, Azalea Holdings, Kisima Management Company.

While upholding the case by lawyer Cecil Miller for the tycoon, Justice Luka Kimaru of the High Court ruled that the DCI overstepped its mandate, which does not include tax matters. In the lower court the DCI had claimed that the eight companies were serving as conduits of laundering hundreds of millions of shillings.

Mr Miller, however in his High Court appeal, argued that the Kenya Revenue Authority (KRA) and other relevant agencies of the government were capable of handling the issues relating to tax and recovery of assets bought with fraud money.

Justice Kimaru ruled; “It is evident that there is an element of jurisdictional overreach by the DCI on matters which are statutorily under the jurisdiction of the Assets Recovery Authority (ARA) and KRA.”

He declined to interfere with criminal cases filed by the Director of Public Prosecutions at the Thika and Milimani Law Courts against Mr Kariuki and his firms, saying those courts have jurisdiction to determine the case based on evidence availed. Besides the money laundering claims, Mr Kariuki has denied Sh17bn tax evasion charges.