President William Ruto and Devki Group CEO Narendra Raval during a past event. Photo: Nation Media.
Just a day after Devki Group CEO Narendra Raval opined that President William Ruto should rule for 25 years, reports are surfacing, exposing how his companies are evading taxes in the country.
As exposed by a famous blogger, Cyprian Nyakundi, Devki Group, that comprises of Devki Steel Mills, Cemtech Limited among other subsidiaries, is evading a tax totaling to over Kshs. 4 billion. According to the blogger, Kenya Revenue Authority (KRA) officials who try to follow up on the taxes with the company are pressured, intimidated and warned of dismissal.
“Central to the email are allegations that the Devki Group, through its subsidiaries Devki Steel Mills Limited and Cemtech Limited, is at the centre of efforts to coerce the Kenya Revenue Authority (KRA) into overlooking tax liabilities amounting to Kshs. 1.6 billion and Kshs. 2.4 billion respectively,” wrote Nyakundi.
“The email details a disturbing pattern of intimidation, with claims that public officials at KRA and Treasury who resisted the demands were subjected to direct threats of dismissal and investigations by anti-corruption agencies,” he added.
According to a whistleblower whose name has been kept anonimous, President William Ruto claimed that there will be no tax waivers for anyone. However, since then, the President has not reacted or given a way forward on the issue.
“When a senior KRA official escalated the matter directly to the President, seeking clarity, the President’s stance was unequivocal: “No one will be given exemptions; there will be no waivers whatsoever.” This decisive response reflects the President’s commitment to fairness and the rule of law. However, these words have yet to translate into action, as the intimidation persists,” said the anonimous source.
It is further indicated that Devki has created a monopolistic environment that has created significant challenges for competitors, repelling some to leave the Kenyan market. Competitors have, however, refrained from speaking openly on the issue for fear of retaliation.
“A representative from Bamburi Cement disclosed that the hostile market dynamics are forcing them to consider exiting the Kenyan market, leaving it open for Devki’s dominance. Speaking to two large steel companies, they raised concerns about poor quality products from Devki’s steel mills,’’ said the insider.
The insider also claimed that due to this monopoly, quality has been put at risk, with Kenya Bureau of Standards (KEBS) facing threats in their bid to dismiss some of Devki products. Many contractors and Chinese companies have confirmed that most of these products are of low quality, hence they have occasionally rejected them.
“These actions are not just unethical but detrimental to Kenya’s economy and reputation. The monopolistic tendencies and compromised quality standards harm competitors, contractors, and the public. The culture of threats, blackmail, and coercion targeting public officials, regulatory bodies, and industry players perpetuates impunity and undermines our institutions,” said the insider.
The source, who is afraid of discharge of his or her duties, urged relevant authorities to initiate an action, asking regulatory bodies such as KRA and KEBS to be allowed to work independently, deprive of political interference.
“I am too afraid to come forward openly for fear of being targeted, fired, or falsely accused. However, I urge those in positions of power to take action. The manipulation of public institutions for personal and corporate gain must end. The President’s firm stance against waivers and exemptions must be enforced. Regulators like KEBS and KRA should be empowered to act independently, free from political and corporate interference,” the insider asserted.
Motivated to strike transformation and justice in the country, the insider confirmed that Kenyans need to have institutions that work in line with their core values. The insider promised that he/she is ready to expose more in order to save Kenyans from political bondage.
“This letter is a plea for justice and reform. The Kenyan people deserve institutions that operate with integrity, businesses that adhere to ethical practices, and leaders who prioritize public welfare over personal or corporate interests,” said the insider, adding, “This is a cry for help. We have no one to reach out to. Nowhere to go. This is our final location. More information to follow. We are motivated. We are positive. We are willing. Please give us your attention.”
Another whistleblower exposed systemic malpractice and abuses that appear to be deeply rooted within the company.
The whistleblower who worked for Devki from 2018 to 2022, claimed that there is a toxic working environment, where employees are subjected to unjust wage deductions, unsafe working conditions and intimidation tactics meant to silence any opposition. When they ask about these injustices, they are threatened with termination of employment or, fired at the spot.
“I worked there for 4 years from 2018 to late 2022. I saw bad things there, to be specific at Maisha Mabati Ruiru. Huko HR ni wezi, mshahara end month na advance inakuwa deducted 3k na huwezi uliza. Ukijaribu kuuliza unafutwa. From supervisor hadi HR wote ni wakamba. Ukiumia ukiwa job huwezi lipwa, ukijaribu kufile case wanalipa your lawyer na unafutwa kazi. That man is untouchable kabisa, huko watu wanaumia na ako na kampuni ya kugenerate acid (ARP) inaharibu environment,” said the former employee.
On October 2, 2024, the National Treasury through its Cabinet Secretary, Mr. John Mbadi, wrote a letter to Mr. Lokesh Kumar, the Group’s director, requesting him to settle the unresolved VAT as demanded by KRA.
“In the letter, it is indicated that Kenya Revenue Authority issued a letter indicating that the National Treasury has not fulfilled its commitment to settle VAT that the Government undertook to pay puny of Kshs. 1,604,579,640.09 and Kshs. 2,413,761,656 on behalf of Devki Steel Mills Ltd and Cemtech Ltd, respectively. Further, you also indicated that you requested that the issue to be resolved by the Kenya Revenue Authority to avoid disruption of your operations,” read part of the letter.
