Devki Multi Billionaire Narendra Raval has broken the silence following a Ksh2 billion tax uproar.
Speaking during the groundbreaking Ceremony for the Devki Iron Processing Project, in Taita Taveta County on Tuesday, December 3, the tycoon said that his companies were remitting billions in Tax.
He explained that he was paying a total of Ksh2 billion every month to the government in the form of direct and indirect tax.
Further, Narendra Raval insisted that all he wanted was to create employment opportunities for Kenyans.
“I don’t want to make money, I want to create employment for Kenyans. By 2030, I want to make sure that I employ 30,000 Kenyans directly.”
“Today we are paying direct and indirect tax of Ksh2 billion every month. Out of Ksh2 billion, by the time we finish this project, it will be much higher than what we are paying. that is the right way to collect taxes. We will bring on 10 more industries,” he said.
Additionally, he revealed that when the government subjected Kenyans to additional tax including the housing levy and the Social Health Authority (SHA) contributions, he increased his employee’s salaries by 20 percent.
“When the government introduced the tax for the housing levy and the SHA, I have 14, 000 Kenyans working in my group.
“I increased their salary from 5 percent to 20 percent. I don’t want them to lose money in their pocket. They are all happy,” he added.
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KRA Goes After the Devki Billionaire
Earlier, the Kenya Revenue Authority (KRA) sought a Ksh4 billion tax payment for two of the businessmen’s companies, after Treasury Cabinet Secretary John Mbad refused to use taxpayers’ money to settle the payment.
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In a letter dated October 2, 2024, presented before the High Court, Mbadi informed Lokesh Kumar, the Group Commercial Director of Devki Steel Mills Ltd and Cemtech Ltd, that it would be unlawful to use government funds to pay taxes on behalf of the two firms.
The Cabinet Secretary revoked a commitment made by the former Jubilee administration, which had promised Raval’s companies exemption from Value Added Tax on machinery and a clinker plant in West Pokot in 2015, as well as on Devki’s machinery and plant in 2020.
“We have reviewed the matter and wish to clarify that the letters issued by the National Treasury and Economic Planning lack any basis in tax laws or other legislation,” Mbadi stated.
Also Read: Ruto Reappoints Billionaire Narendra Raval to Govt Role
Govt Changes Tune
However, on Monday, December 2, the government allowed Narendra Raval to import the equipment required for establishing the Ksh11 billion steel plant in Taita-Taveta duty-free.
According to industry Principal Secretary Juma Mukhwana the move was made to boost the local manufacturing sector.
“This is a joint venture between the Ministries of Trade and Mining to provide a conducive environment for the investor to kickstart the mega project. We have given the investor a duty exemption,” said the PS.
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