Top, from left: Gitahi Gachahi, Ernst & Young chief executive,
Naushad Merali, Sameer Investment chairman, Bharat Thakrar (Scangroup
CEO), Baloobhai Patel, Director Sanlam Kenya, Narendra Raval, Chairman
Devki Group, and Philip Kinisu, former EACC chairman. Bottom, from left:
Pradeep Paunrana, ARM cement CEO, Paul Wanderi Ndung'u, Mobicom Group
chairman, Josphat Mwaura, KPMG CEO, Philip Muema, former KPMG partner,
Richard Bell, co-founder Wananchi Group, and Andrew S.M Ndegwa, Director
NIC Bank. FILE PHOTOS | NMG
Summary
- Top on the list of the silent billionaires are KPMG’s chief executive, Josphat Mwaura, Ernst & Young’s CEO, Gitahi Gichahi and Philip Kinisu, the former chairman of the ethics and anti-corruption commission.
- Others are SportPesa chairman Paul Ndung’u and Andrew Ndegwa (of the Philip Ndegwa business dynasty).
- At least three women, including Lucy Mwiti and Faith Mwikali, have also broken the glass-ceiling to earn their seats at the coveted table of the rich
Kenya Revenue Authority’s (KRA)
publication of the top taxpayers’ list has uncovered more than 100
little-known billionaires, whose net worth appears to have grown only
recently, catapulting them into the coveted club of the rich.
The
fortunes of high-net-worth individuals (HNWIs) with gross annual
incomes of between Sh350 million and Sh1 billion have defied the tough
economic times that have characterised Kenya in the past six years to
grow at a robust speed, according to the taxman’s latest ranking of the
leading taxpayers.
Top
on the list of the silent billionaires are KPMG’s chief executive,
Josphat Mwaura, Ernst & Young’s CEO, Gitahi Gichahi and Philip
Kinisu, the former chairman of the ethics and anti-corruption
commission.
KPMG CEO Josphat Mwaura. FILE PHOTO | DIANA NGILA | NATION MEDIA GROUP
KPMG CEO Josphat Mwaura. FILE PHOTO | DIANA NGILA | NATION MEDIA GROUP
Others are SportPesa chairman Paul Ndung’u and Andrew Ndegwa (of the Philip Ndegwa business dynasty).
They are now listed alongside the
owners of old money such as stock market billionaire investor Baloobhai
Patel, businessman Naushad Merali (Sameer Investments chairman), Bharat
Thakrar (Scangroup CEO) as well as industrialists Narendra Raval (Devki
Group chairman) and Pradeep Paunrana (ARM Cement CEO).
At
least three women, including Lucy Mwiti and Faith Mwikali, have also
broken the glass-ceiling to earn their seats at the coveted table of the
rich – signalling that Kenya’s patriarchal society that has
traditionally concentrated wealth in the hands of men is beginning to
change.
The KRA says the data used to
calculate the gross income of these individuals for purposes of
taxation represents consolidated incomes earned from employment, private
partnerships, marketable securities and the array of businesses they
control.
Narendra Raval, Chairman, Devki Group. FILE PHOTO | NMG
Narendra Raval, Chairman, Devki Group. FILE PHOTO | NMG
“The annual range of Sh350 million to
Sh1 billion represents all gross income earned by an individual,” a
source familiar with the workings of the medium tax office (MTO), which
handles these individuals, told the Business Daily.
The
KRA data offers new insight into the population of Kenya’s billionaires
whose ranks are expected to be much larger but remains undocumented for
tax purposes.
The KRA list is
mainly made up of individuals who have adopted relatively greater
transparency in management of their wealth and tax obligations.
Naushad Merali, Sameer Investments chairman. FILE PHOTO
Naushad Merali, Sameer Investments chairman. FILE PHOTO
Politically connected
Kenya
is known to have a large group of super-rich individuals (especially
the politically connected), who have hidden their wealth in trusts and a
labyrinth of companies to evade taxes.
The
KRA list of top taxpayers shows that besides entrepreneurship, some
professions reward individuals well enough to catapult them to the top
of the income ladder.
Doctors,
lawyers and accountants are among those whose professional incomes
offer a real chance of social mobility. Partners at audit firms can rake
in tens of millions of shillings in a year depending on the performance
of their companies.
This is because they are entitled
to a share of profits or losses made. More consultancy jobs often
translate into higher earnings for these individuals.
“Partners
at audit firms make between Sh20 million and Sh50 million on average,”
an executive at a Nairobi-based consultancy told the Business Daily.
Philip Kinisu, the former chairman of the ethics and anti-corruption
commission is one of the silent billionaires. FILE PHOTO | NATION MEDIA
GROUP
Philip Kinisu, the former chairman of the ethics and anti-corruption
commission is one of the silent billionaires. FILE PHOTO | NATION MEDIA
GROUP
Auditors on the list
of high-net-worth professionals include Philip Muema, Geoffrey Karuu,
Peter Anchinga, Gulamhusein Fakrudin, Patrick Kamau, Brian Disouza and
Jacob Gathecha.
Top lawyers can also
make a killing from their work, especially when they advise or represent
large corporate clients in high-stakes commercial transactions and
disputes.
Doctors running their own
clinics are also in the gravy train. Some analysts note that there exist
major disparities in wealth even among the high-net-worth individuals,
observing that not all of the individuals have multi-billion shilling
assets.
“The amounts (as classified
by MTO) only represent turnover. The net profits may be considerably
smaller,” said Ashif Kassam, the executive chairman of advisory firm RSM
Eastern Africa.
Those whose fortunes
are ascertained include Mr Merali, Mr Ndegwa, Mr Patel, Mr Thakrar, Mr
Paunrana, and Mr Raval. Through his holding company Sameer Investments,
Mr Merali owns stakes in scores of companies spread across agriculture,
trade, manufacturing and real estate among other sectors.
Bharat Thakrar, WPP Scangroup CEO. FILE PHOTO | NMG
Bharat Thakrar, WPP Scangroup CEO. FILE PHOTO | NMG
Mr Ndegwa holds
shares worth more than Sh1 billion in NIC Bank alone. Mr Patel’s stock
market portfolio stands at over Sh3 billion, featuring stakes in
Carbacid Investments, Barclays Bank of Kenya and Diamond Trust Bank.
Mr
Thakrar also retains more than Sh1 billion in marketing services firm
Scangroup alone, having sold stock worth millions of shillings in the
company.
Mr Paunrana holds shares
worth about Sh1.8 billion in ARM Cement alone. Mr Raval has a
substantial interest in Devki Group, the conglomerate that manufactures
steel, cement and roofing sheets. Other HNWIs not on the KRA list are
likely paying their taxes through their companies.
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