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Humphrey Kariuki gets nod to take part in Sh3bn tax case

Humphrey Kariuki
Businessman Humphrey Kariuki. FILE PHOTO | NMG 

Billionaire businessman Humphrey Kariuki has been allowed to participate in the Sh3 billion tax claim facing his firms.

Mr Kariuki was enjoined in the suit as a respondent after the Kenya Revenue Authority (KRA), which had earlier opposed his bid to participate in the suit in his personal capacity, changed tune.

KRA and officials from the Directorate of Criminal Investigations in February raided his factory in Thika, shut it down and obtained court orders that froze the firm’s bank accounts over tax evasion claims.

Mr Kariuki applied in early March seeking to be enjoined in the suit, arguing that as a director of the firm, KRA would eventually come for his personal assets and bank accounts to recover the tax.

“By consent the application dated March 4, 2019 seeking to enjoin Humphrey Kariuki Ndegwa to proceeding as a third respondent is allowed,” ordered Justice Wilfrida Okwany.

Legal entities

KRA had earlier opposed his application on grounds that his companies are separate legal entities.

KRA noted that the only scenario that can make a director liable for tax owed by a firm is when they have transferred assets of the company to themselves or used for personal benefit, but this has not been proved. KRA in February obtained orders freezing 11 accounts associated with Mr Kariuki over alleged tax evasion.

Justice Okwany extended these orders until April 8 when the case will be heard.

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