A leaked email has brought to light serious allegations of unethical practices and corporate misconduct involving the Devki Group under Narendra Raval, one of Kenya’s most influential business conglomerates.
The email sheds light on what appears to be systematic efforts to pressure public institutions like the Kenya Revenue Authority (KRA) into overlooking massive tax liabilities amounting to Kshs. 4 billion, split between its subsidiaries, Devki Steel Mills Limited and Cemtech Limited.
These revelations paint a troubling picture of corporate overreach, intimidation, and regulatory failures.
The email highlights that officials at the KRA and the Treasury who attempted to resist these pressures faced severe repercussions, including threats of dismissal and investigations by anti-corruption agencies.
This climate of fear allegedly extends beyond tax evasion, implicating the group in regulatory violations and unethical business practices.
One notable instance involves Simba Cement, a Devki subsidiary, reportedly selling underweight cement bags in contravention of Kenya Bureau of Standards (KEBS) regulations.
Despite these infractions, KEBS officials were allegedly silenced through threats of job loss, further eroding trust in regulatory institutions.
The situation has created a monopolistic environment, discouraging competitors from speaking out due to fears of retaliation.
Industry players have voiced concerns over an increasingly hostile market environment dominated by the Devki Group.
For example, a representative from Bamburi Cement hinted at the possibility of exiting the Kenyan market, citing unfair practices and stifled competition.
Moreover, complaints about substandard steel products from Devki’s steel mills have been raised by contractors and Chinese firms, who often return goods due to quality concerns an untenable situation in high-stakes construction projects.
The email includes a whistleblower’s detailed account, illustrating the pervasive culture of threats and coercion.
The whistleblower describes an environment where corporate interests overpower public institutions, leading to systemic corruption and impunity.
Notably, when a senior KRA official sought presidential intervention, the President reportedly declared that no tax waivers or exemptions would be granted.
While this response reflects a commitment to fairness, the lack of tangible action has allowed the alleged intimidation to persist, undermining the integrity of public institutions.
These allegations point to a larger issue of state capture, where corporate interests wield undue influence over public policy and administration.
Without decisive intervention, the monopolistic tendencies and compromised quality standards perpetuated by the Devki Group threaten to inflict long-term damage on Kenya’s economy and reputation.
