Africa Spirits Limited, the once-prominent alcoholic beverages company owned by controversial businessman Humphrey Kariuki, has officially been placed under administration, according to a notice published under the Insolvency Act, 2015. 

The notice, dated June 20, 2025, confirms the appointment of Peter Kahi of PKF Consulting (K) Limited as the administrator of Africa Spirits Limited.

The appointment, made on June 17, 2025, grants Kahi full control over the company’s assets and operations in a bid to rescue the firm or achieve a better outcome for its creditors than liquidation would allow. 

According to the legal notice, all powers of the company’s directors, shareholders, and staff in handling the firm’s finances or transactions have ceased unless explicitly authorised by the administrator.

Creditors have been instructed to submit any claims they may have against the company by July 18, 2025.

“None of the directors, shareholders, employees or any other person is authorised to transact any business on behalf of the Company without express written consent from the Administrator.” 

This move comes amid long-standing legal and financial troubles surrounding Africa Spirits, one of Kenya’s largest local distillers, and its flamboyant owner, Humphrey Kariuki. 

Africa Spirits has been under the spotlight since January 2019, when the Kenya Revenue Authority (KRA) conducted a dramatic raid on the company’s Thika-based factory.  

The taxman accused the company of engaging in large-scale tax evasion through the use of fake excise stamps and failure to declare the full volume of alcohol produced and sold. 

The crackdown led to the seizure of goods and machinery worth billions of shillings, and the KRA claimed that Africa Spirits had denied the government over Sh41 billion in taxes.  

Kariuki, along with several top company officials, was charged with tax fraud, possession of counterfeit excise stamps, and being in possession of uncustomed goods. 

Though he denied the charges and was released on bail, the legal battle dragged on for years, with the Directorate of Criminal Investigations (DCI) and the KRA maintaining a firm stance on prosecution.

Meanwhile, the company’s operations remained largely suspended, leading to significant financial distress. 

The collapse of Africa Spirits threatens to unravel a larger business empire associated with Kariuki, who is also known for owning Dalbit Petroleum, Great Lakes Africa Energy, and luxury hospitality assets such as The Hub Karen and Mt. Kenya Wildlife Conservancy. 

Despite his high profile and philanthropic activities, Kariuki’s empire has been repeatedly dogged by scrutiny from tax authorities and anti-corruption agencies. His troubles with the KRA have served as a flashpoint in Kenya’s broader crackdown on tax cheats and economic crimes. 

In 2020, Kariuki briefly fled the country before returning to face charges. His legal team has repeatedly argued that the accusations were politically motivated and based on flawed audits. Nevertheless, court proceedings have continued intermittently, with the company unable to resume full operations. 

Avoid liquidation 

With Africa Spirits now under administration, Kahi’s mandate will be to assess the financial position of the company, negotiate with creditors, and potentially restructure the business to avoid liquidation. 

It is not clear, given the magnitude of the legal and tax liabilities involved, if the firm will survive or will ultimately be broken up or sold off to satisfy creditor demands. 

Kahi has a reputation for handling high-profile corporate collapses, having previously overseen the administration of Nakumatt Supermarkets and Mumias Sugar Company. His involvement signals a last-ditch effort to salvage some value from the once-booming liquor firm. 

The public and stakeholders have been asked to direct all communications to the administrator’s office, with any inquiries or claims to be submitted before the mid-July deadline. 

As of now, the future of Africa Spirits Limited—and whether it can rise from the ashes of legal battles and financial collapse—remains uncertain. What is clear, however, is that the company is fighting for survival under the weight of unresolved disputes with the state.