Preparations for this year’s national examinations have been thrown into uncertainty after the Kenya National Examinations Council (KNEC) was dragged into a tax evasion probe involving a Greek printing firm that handled last year’s papers.
The firm, Inform Lykos (Hellas) SA, is under investigation by the Kenya Revenue Authority (KRA) over allegations that it under-declared the value of a multi-billion shilling contract, leading to a potential tax shortfall of nearly Sh700 million.
The contract awarded to Inform Lykos was valued at approximately Sh2.8 billion (about €18.7 million), under Delivery Duty Paid (DDP) terms—meaning all applicable taxes were to be settled by the supplier.
However, investigators say the firm declared invoices worth only €4.2 million upon importation of the exam materials, paying about Sh132 million in taxes instead of the expected Sh781 million. This has raised suspicion of a tax underpayment estimated at Sh649 million, with penalties potentially pushing the figure close to Sh1 billion.
In a formal notice issued in January, KRA invoked provisions of the Tax Procedures Act and demanded documents from KNEC, including contracts, invoices, payment schedules, and delivery records covering imports from 2020 to date.
Amid the ongoing investigations, KNEC is now considering suspending its working relationship with Inform Lykos to avoid disruptions, legal exposure, and reputational damage that could affect the timely printing of this year’s exams for Form Four, Grade Nine, and Grade Six candidates.
A senior official at the council indicated that internal consultations are ongoing with the Ministry of Education, even as KNEC cooperates fully with investigators. Staff involved in the tender process have already recorded statements.
The probe could extend beyond KNEC contracts. Sources indicate that authorities may also review deals involving the Independent Electoral and Boundaries Commission (IEBC), which previously awarded Inform Lykos a contract worth about Sh3.4 billion to print ballot papers during the last General Election.
The development raises fresh concerns about procurement oversight and tax compliance in high-value government tenders. Some officials warn the case could escalate into a scandal comparable to past procurement controversies if irregularities are confirmed.
Founded in 1897, Inform Lykos is a major player in secure document printing and information management, with operations across parts of Europe and listings on the Athens Stock Exchange. The firm made history by becoming the first non-UK company in over six decades to print Kenya’s national exams.
With investigations still ongoing, uncertainty now looms over whether the firm will continue handling sensitive government printing jobs. Any disruption in the procurement or printing process could significantly affect the national examination calendar.
KRA says investigations are at an advanced stage but not yet concluded.
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