Reprieve for billionaire Humphrey Kariuki as Gov’t finally gives back his liquor factory

The government on Wednesday handed back the premises of a Thika-based distillery to Africa Spirits Limited (ASL), which is owned by billionaire Humphrey Kariuki, almost four years after it was closed by the Kenya Revenue Authority (KRA).

KRA shut down the factory in January 2019 on suspicion that the distiller was packaging illicit alcohol and using fake excise stamps to evade paying taxes.

"The factory doors had been welded shut, complete with DCI and KRA seals, and premises gates manned by police. It's doors were opened today and the seals from KRA and DCI broken in the presence of senior officials from the two state agencies," ASL said in a statement.

ASL’s lawyer Manasses Mwangi however maintained that the premises had been vandalised, a statement he had earlier brought up before the court during trial.

"ASL’s lawyer indicated that there had been reports that a number of unidentified vehicles had inexplicably entered and left the premises severally during the years of KRA and DCI control," the statement added.

"The facts of the destruction of the property premises were corroborated at a visit by the trial court to the premises on July 21, 2020."

The court had initially ordered that the Thika distillery be handed over to ASL on November 23, 2020 before the prosecution filed a petition four days later challenging the decree.

The aforementioned petition was dismissed on April 8, 2021.

"The prosecution then went to the High Court where its application to have the orders of the Magistrate’s court to release the premises overturned was dismissed on 30 June 2021," said ASL.

"While the order to hand back the premises in November 2020 had not been suspended or overturned, the outgoing DCI in complete violation of the repeated court orders over the years, refused to hand over as directed."

In a petition filed before the High Court in November 2021, ASL’s lawyers argued that confiscation of the premises and destruction of evidence was orchestrated to remove their ability to challenge and defend themselves in criminal charges made against them.

They similarly faulted the DCI for accessing the premises without legal warrants and going against a court order to release the property.

"This was against the backdrop of a High Court finding in October 2019 that the authorities had acted illegally, and their conduct had resulted in jurisdictional overreach and a violation of ASL’s rights to a fair trial," noted ASL.

"Hon. Justice A.C. Mrima of the High Court on May 23, 2022 ordered for all charges in Criminal Case No. 1333 of 2019 to be quashed because numerous actions by the authorities violated constitutional provisions."