Kenya Insights

Tag: Raval state capture Kenya

  • Billionaires Narendra Raval, Jaswant Rai and Tanzanian Rostam Aziz Under Fire as MPs Probe Sh15bn Tax Exemptions Bleeding Economy

    Billionaires Narendra Raval, Jaswant Rai and Tanzanian Rostam Aziz Under Fire as MPs Probe Sh15bn Tax Exemptions Bleeding Economy

    Kenya’s billionaire tycoons Narendra Raval, Jaswant Rai and Tanzanian tycoon Rostam Aziz are at the center of a storm as the National Assembly launches a high-stakes investigation into Sh15 billion in value-added tax (VAT) exemptions granted to their companies and 12 other firms.

    The probe, spearheaded by the Finance and National Planning Committee under Molo MP Kuria Kimani, comes as Kenya grapples with a hemorrhaging economy, struggling to meet its Sh2.8 trillion revenue target for the next financial year.

    Critics argue these exemptions, linked to a legislative error, have enriched a handful of industrial magnates while draining public coffers, exacerbating the nation’s fiscal woes.

    The investigation, prompted by House Speaker Moses Wetang’ula’s suspension of the VAT (Amendment) Bill 2025, aims to scrutinize whether the exemptions—granted to firms with a claimed Sh93.53 billion in investments—were justified.

    With the Kenya Revenue Authority (KRA) facing a revenue shortfall and the country losing over Sh300 billion to tax waivers this year, MPs are questioning whether tycoons like Raval and Rai are profiting at the expense of ordinary Kenyans.

    Tycoons in the Spotlight

    Narendra Raval: The Steel and Cement Kingpin

    Narendra Raval, the 62-year-old chairman of Devki Group, is Kenya’s most prominent industrialist, with a fortune estimated at over $500 million by Forbes in 2015 and a group turnover exceeding $1 billion annually.

    His empire, spanning steel, cement, and energy, dominates the exemption list, with three subsidiaries—Devki Steel Mills, National Cement Company Limited, and CEMTECH Limited—securing Sh4.36 billion in VAT waivers.

    • Devki Steel Mills: Raval’s flagship company, operating a mega project in Kwale County and an iron ore processing plant in Voi, Taita Taveta County, received Sh2.43 billion in exemptions since March 2023 for investments worth Sh15.22 billion.
    • National Cement Company Limited: A Devki subsidiary, it secured Sh1.44 billion for projects in Kaloleni, Kilifi County (Sh516.5 million), and Eldoret, Uasin Gishu County (Sh921.35 million).
    • CEMTECH Limited: Acquired by Devki in 2019, its West Pokot clinker plant received Sh488.74 million for a Sh3.1 billion investment.

    Raval’s close ties to President William Ruto have raised eyebrows. Appointed to lead the National Lottery in 2023 and the Manufacturing Council, Raval is seen as wielding significant influence over policy. Fondly known as ‘Guru’ Raval has lately been dubbed “Kenya’s Gupta,” owing to his grip on government tenders and policies that favors his empire, potentially at the economy’s expense.

    Narendra Raval and President Ruto are seen in State House, Nairobi at a past event.
    Narendra Raval and President Ruto are seen in State House, Nairobi at a past event.

    Critics, warn of “state capture,” citing Raval’s push for higher clinker import duties, which benefited his National Cement while disadvantaging competitors like Rai Cement and Savannah Cement.

    Raval’s companies are also embroiled in a separate Sh4 billion tax dispute with KRA, which revoked earlier VAT exemptions on imported machinery, demanding Sh1.6 billion from Devki Steel Mills and Sh2.4 billion from CEMTECH. Raval has taken the matter to court, arguing the Treasury’s initial undertaking should stand.

    Jaswant Rai: The Sugar and Cement Baron

    Jaswant Rai, the billionaire patriarch of the Rai family, heads the Rai Group, a conglomerate with interests in sugar, cement, and consumer goods.

    His Rai Cement, a key player in Kenya’s cement industry, received Sh1.01 billion in VAT exemptions since October 2024 for investments worth Sh6.34 billion.

    The Rai family, one of East Africa’s wealthiest, also controls Menengai Oil Refineries and Menengai Orchards, and has been linked to bids for Mumias Sugar Company’s lease.

    Rai Cement has clashed with Raval’s National Cement over clinker import duties, arguing that higher levies favor Raval’s local production and threaten smaller players.

    The Rai family’s influence in the sugar sector has also drawn scrutiny, with their West Kenya and Sukari Industries bidding for state-owned millers.

    Other Firms in the Crosshairs

    The probe extends to 11 other companies, including:

    • Taifa Gas Kenya Limited: Linked to Tanzanian tycoon Rostam Aziz, it received Sh827.9 million for Sh5.2 billion in investments.
    • Soit Sugar Company Ltd and Angata Sugar Mills Limited: Private sugar firms with Sh465.1 million and Sh343.31 million in exemptions, respectively, but little public information on ownership.
    • SBC Kenya Limited, De Heus Animal Nutrition Limited, DPL Festive Limited, Nakuru Mining, and Rainham Steel Plant Limited: These firms collectively received Sh7.26 billion, with Nakuru Mining’s Sh6.2 billion exemption for a Sh38.74 billion investment raising particular concern. Ownership details remain opaque.

    A Bleeding Economy and Legislative Blunder

    Parliament Buildings.
    Parliament Buildings.

    The Sh15 billion in exemptions stems from a printing error in the Tax Laws (Amendment) Act, effective December 27, 2024, which allowed VAT waivers for investments over Sh2 billion.

    Its retrospective application to January 2024 has sparked outrage, with MPs like Alego Usonga’s Samuel Atandi warning that such policies undermine revenue collection.

    “We cannot achieve our Sh2.8 trillion target with unexplained exemptions,” Atandi said, noting the Sh300 billion lost to waivers this year.

    The VAT (Amendment) Bill 2025 aims to correct the error, but its suspension reflects MPs’ demand for accountability.

    Leader of Majority Kimani Ichung’wah stressed the need to verify investments, saying, “We must ascertain these are actual investments with real economic impact.”

    However, the probe faces challenges, as Kenya’s history of tax evasion among the super-rich—often hidden through trusts and shell companies—complicates transparency.

    Public Outrage and Economic Stakes

    The exemptions have fueled public discontent, amplified by Kenya’s economic struggles, including a foreign exchange crisis and a downgraded credit rating.

    Posts on social media reflect growing frustration, with some accusing Raval of leveraging his proximity to Ruto to secure favorable policies.

    The Kenya Association of Manufacturers (KAM) has warned that tax policies favoring tycoons like Raval could lead to capital flight and job losses, as seen in past battles over clinker duties.

    While Raval and Rai have argued that their investments create jobs and drive industrialization, critics contend the benefits are overstated.

    Raval’s Devki Group employs 14,000 and aims for 30,000 by 2030, but competitors in the clinker business would say that policies tilted toward dominant players stifle competition.

    Atandi and others advocate for stricter scrutiny, with Busia Senator Okiya Omtatah’s successful challenge against a Sh385 million exemption for NCBA setting a precedent.

    As the Finance and National Planning Committee conducts site visits and digs into the exemptions, the probe could redefine Kenya’s tax policy.

    Will it expose a system rigged for billionaires, or validate the waivers as essential for growth?

    For now, Raval and Rai, whose empires have shaped Kenya’s industrial landscape, face intense scrutiny as Kenyans demand answers on why the economy is bleeding while tycoons thrive.

  • Kenya’s Gupta? Inside the Shady Empire of Narendra Raval and His Grip on Ruto’s Govt

    Kenya’s Gupta? Inside the Shady Empire of Narendra Raval and His Grip on Ruto’s Govt

    Kenya’s Gupta—that’s the label increasingly pinned on billionaire Narendra Raval, Executive Chairman of Devki Group, whose cozy alliance with President William Ruto is raising alarm bells in a nation battered by economic hardship, joblessness, and soaring living costs.

    Much like the infamous Gupta family of South Africa, Raval is seen as a powerbroker leveraging political ties to dominate entire industries, land shady government deals, and suppress scrutiny.

    From a fertilizer scandal that devastated farmers to sweetheart tenders and suspiciously warm relations with labor boss Francis Atwoli, Raval’s grip on Kenya’s economy is tightening—while millions of ordinary citizens continue to suffer.

    President Ruto hailed Narendra Raval, Executive Chairman of Devki Group, as a transformative leader—credited with creating over 14,000 jobs and supporting 12,000 schoolchildren daily for two decades. [Photo: Courtesy]

    The Rise of ‘Kenya’s Gupta’ – Raval’s Unholy Ties with the Ruto Regime

    Narendra Raval has quietly positioned himself as the untouchable billionaire within Kenya’s industrial and political arenas.

    A man with interests in steel, cement, and energy, Raval wields disproportionate influence over government decisions.

    His appointment as Chair of Kenya’s Manufacturing Council was not mere coincidence—it was a strategic move to tighten his grip on state machinery.

    Much like the Guptas in South Africa, who controlled key ministerial appointments under Jacob Zuma, Raval enjoys VIP access to President Ruto’s inner circle.

    Government tenders are mysteriously tilted in his favor, and Devki Group is emerging as the preferred partner in everything from fertilizer distribution to mega construction contracts.

    Kenyans are starting to connect the dots: Why does one businessman seem to appear in nearly every major infrastructure or agriculture-related project? Why does the government continue to trust a man with a tainted track record?

    The Rotten Fertilizer Scandal: Profits Over People

    In 2023, Russia donated 70,000 tons of fertilizer to Kenya to support struggling farmers. Instead of distributing this life-saving aid directly, the government handed it over to none other than the Devki Group. What followed was a textbook example of greed and exploitation.

    Devki allegedly repackaged the fertilizer, mixing it with sand and questionable chemicals to increase the volume. They then sold it back to the government for distribution.

    The result? Massive crop failures, soil contamination, and widespread farmer despair. Raval cashed in, while rural livelihoods went up in smoke.

    This was not just a case of corporate malpractice—it was state-enabled economic sabotage. The parallels with South Africa’s GuptaLeaks are chilling.

    There, the Guptas looted state-owned enterprises (SOEs) and manipulated government policy. In Kenya, Raval appears to be walking the same path—with Ruto’s blessing.

    Sweetheart Deals and Tenders: Devki’s Unchecked Expansion

    Narendra Raval’s Devki Group has become synonymous with opaque government contracts. From roads to cement supply and industrial power generation, Devki’s name keeps popping up.

    The billionaire has mastered the art of state capture: win tenders with little competition, exploit tax loopholes, and ensure no regulatory oversight.

    While small and medium enterprises (SMEs) struggle with bureaucracy and over-taxation, Devki thrives. Kenya Revenue Authority looks the other way. Trade ministry officials don’t blink. It’s a monopoly masquerading as economic development.

    Kenya's Gupta
    Narendra Raval is not just another rich man. He is a powerful figure manipulating Kenya’s economy and politics for personal gain—Kenya’s Gupta in every sense. [Photo: Courtesy]

    The Selling Out of Kenyan Workers: Atwoli, Labor Unions, and the Billionaire’s Grip

    The Central Organisation of Trade Unions (COTU) has long been the voice of Kenyan workers—until it wasn’t. Under Secretary General Francis Atwoli, COTU has morphed into a mouthpiece for big business, especially Devki Group.

    Atwoli, once vocal against corporate exploitation, is now regularly seen endorsing Raval’s projects.

    From attending factory launches to public praises of Devki’s “job creation,” Atwoli’s alliance with Raval is both strategic and suspicious.

    Workers have reported unsafe conditions and poor pay within Devki plants, yet COTU remains silent.

    Is Atwoli pocketing perks to keep quiet? Is the labor movement being used to whitewash Raval’s shady business practices? Many Kenyan workers say yes.

    Workers’ Rights Crushed Under Devki’s Boot

    Multiple whistleblowers and former Devki employees have reported hostile work environments, low wages, and the use of subcontracting firms to avoid legal obligations.

    Union efforts to organize inside Devki factories have allegedly been blocked through intimidation and blacklisting.

    Just like how the Guptas turned state institutions into tools for wealth extraction, Raval appears to be doing the same to Kenya’s labor movement. Exploit the workers, silence the unions, and smile for the cameras.

    Media Silence and the Death of Investigative Journalism

    While international outlets whisper about “Kenya’s Gupta,” local media remains largely silent. Why? Because Devki is one of the country’s top advertisers.

    From full-page ads to sponsorships of press events, Devki’s money buys silence. This echoes the South African case, where Gupta-aligned outlets were used to spread propaganda and silence dissent.

    With every press conference Atwoli attends and every media blackout around Raval’s scandals, the web of influence grows.

    The Time to Speak Out Is Now

    Narendra Raval is not just another rich man. He is a powerful figure manipulating Kenya’s economy and politics for personal gain—Kenya’s Gupta in every sense.

    From poisoning crops to co-opting unions and capturing state contracts, his empire thrives while Kenyans bleed.

    The fertilizer scandal is only one piece of a larger puzzle. If President Ruto is serious about transparency and integrity, he must investigate Raval’s dealings.

    But for that to happen, civil society, opposition leaders, and brave journalists must rise. Because when billionaires are allowed to become untouchable, democracy dies in silence.