NAIROBI, Kenya — Preparations for this year’s national examinations have been thrown into uncertainty after the Kenya National Examinations Council (KNEC) became entangled in a major tax evasion probe involving a Greek printing firm contracted to produce exam papers.
The Kenya Revenue Authority (KRA) is investigating Inform Lykos (Hellas) SA over claims it under-declared invoices linked to a Sh2.8 billion tender, potentially denying the taxman up to Sh700 million in revenue.
At the centre of the probe is a contract awarded last year to the Athens-based firm to print national exams.
The deal, valued at €18.7 million (about Sh2.84 billion), was structured on Delivery Duty Paid (DDP) terms, meaning all applicable taxes, including VAT, were to be settled by the contractor.
However, investigators say that when the materials were shipped into the country, the firm declared invoices worth only €4.2 million, paying approximately Sh132 million in taxes instead of the expected Sh781 million.
Customs officials now estimate a tax shortfall of about Sh649 million—an amount that could rise to nearly Sh1 billion once penalties are applied.
KNEC on Edge
The unfolding scandal has rattled KNEC, with senior officials indicating the council may suspend its dealings with the firm to avoid legal and logistical complications that could disrupt the printing of this year’s Form Four, Grade Nine and Grade Six examinations.
“We have a framework contract with them, but these damning claims have scuttled any further dealings for now,” a senior KNEC official said. “We are consulting the Ministry of Education while cooperating fully with KRA.”
Officials involved in the tender process have already been questioned as part of the ongoing investigation.
Expanding Probe
The taxman formally launched the probe in January, issuing a notice to KNEC under the Tax Procedures Act demanding key documents, including contracts, invoices, payment schedules and delivery records dating back to 2020.
KRA has since interviewed officials from KNEC and a local logistics firm, Ansta Logistics Limited, which handled the clearance of the exam materials.
Sources familiar with the investigation say authorities are also considering extending the probe to contracts awarded by the Independent Electoral and Boundaries Commission (IEBC), where the same firm printed ballot papers for the 2022 General Election and subsequent by-elections.
High Stakes
Founded in 1897 and listed on the Athens Stock Exchange, Inform Lykos has positioned itself as a global provider of secure document solutions. It made history as the first company outside the United Kingdom to print Kenya’s national exams in over six decades.
But the latest allegations threaten to derail its lucrative contracts in Kenya and raise fresh questions about procurement oversight.
“This could turn into something bigger if not handled carefully,” a senior electoral official warned, drawing parallels with past procurement scandals.
