Narendra Raval, one of Kenya’s most prominent industrialists and the founder of the Devki Group, is grappling with serious challenges that are threatening the foundation of his vast business empire.
The steel and cement magnate is now facing intense scrutiny from government agencies over unpaid taxes and irregular concessions, as well as a land dispute that could further complicate his troubles.
According to the Auditor General, Devki underpaid the cement levy to the Kenyan Government by 193.2 million shillings, giving him an advantage over his competitors who paid the full amounts as required by the government.
The firm recently lost a significant mining levy concession after the Auditor-General flagged it for receiving what was termed an “unfair advantage.”
The audit uncovered that National Cement had been paying a reduced mining levy of 100 shillings per tonne, in contrast to the 140 shillings paid by competitors. This differential, originally shielded under a government-approved tax waiver, has now been declared unlawful due to a lack of proper legal backing.
The Auditor-General’s report has further unearthed unpaid taxes amounting to 1.6 billion shillings, raising serious questions about the legality of tax breaks enjoyed by Raval’s businesses. Both the Auditor-General and Parliament concluded that the VAT exemptions granted to Raval’s firms were not only unjustified but also lacked formal authorization.
As a result, the Kenyan Treasury in late 2024 began rolling back a range of tax exemptions, including those previously granted to Devki Steel Mills Ltd and Cemtech Ltd—two other subsidiaries under Raval’s control. These waivers, issued in 2015 and 2020, were initially meant to encourage local manufacturing by exempting import duties on machinery and equipment. However, a subsequent Treasury review found that they had been granted without a legal basis.
The Kenya Revenue Authority (KRA) has since moved in, demanding full payment of the disputed taxes, including penalties and interest. The crackdown represents a significant shift in the government’s approach to tax compliance, especially targeting high-profile industrial players once seen as immune to such scrutiny.
With mounting pressure from regulators and potential legal battles looming, Raval’s once-bulletproof business empire now faces a crucial test.
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