The review uncovered unpaid taxes totaling 12 million, money the government says should have been paid but was previously exempted.
Ravals Voi iron plant stalled amid a land dispute with county officials, threatening the 85 million projects future.
Kenya reviews 116 million in tax relief to 14 firms, including Devki, amid rising scrutiny of politically linked business advantages.
Kenyan steel and cement tycoon Narendra Raval is facing mounting setbacks on multiple fronts, as tax troubles and a land dispute threaten key parts of his industrial empire.
Raval, the founder of Devki Group, recently lost a crucial mining levy concession after Kenyas Auditor-General raised red flags over what was deemed an unfair advantage granted to his company, National Cement. The audit findings have revealed unpaid taxes amounting to Ksh1.6 billion 12 million, money the government says his firms should have paid but were previously exempted from.
Kenya audit spurs tax crackdownThe tax break had allowed National Cement to pay a lower levy, Ksh100 per tonne of cement, while competitors were charged Ksh140. This difference sparked backlash from industry rivals and drew the attention of both the Auditor-General and Parliament, which concluded that the value-added tax VAT waivers granted to Ravals companies lacked proper legal approval.
By late 2024, the Kenyan National Treasury moved to cancel several long-standing tax exemptions. Among those affected were Devki Steel Mills Ltd and Cemtech Ltd, both part of Ravals business network.
The waivers, first issued in 2015 and 2020, were originally meant to encourage local manufacturing by easing costs on imported machinery. But a review by the Treasury found the waivers were issued without legal authority. That prompted the Kenya Revenue Authority KRA to demand immediate payment of the disputed taxes, along with penalties and interest.