TAX EVASION CLAIMS

Keroche directors spend night locked up as cardiologist says Karanja has serious medical condition

In Summary

• Karen Hospital's Dr Gikonyo says Joseph Karanja recently underwent life saving surgery.

Police arrest Keroche Breweries CEO Tabitha Karanja following DPPs order on tax evasion at the Naivasha based factory on August 22, 2019.
Police arrest Keroche Breweries CEO Tabitha Karanja following DPPs order on tax evasion at the Naivasha based factory on August 22, 2019.
Image: GEORGE MURAGE

Keroche Breweries directors Tabitha and Joseph Karanja spent Thursday night locked up over Sh14.4 billion tax evasion allegations.

Meanwhile, Karen Hospital cardiologist Dr D Gikonyo requested Joseph's  release from police custody, citing a 'serious medical condition.'

In a letter on Thursday, the cardiologist said Karanja, 71, had recently undergone life saving surgery and needs regular medication, adding that detention could endanger his life.

 

The Karanjas were arrested by DCI detectives on Thursday at the breweries' premises in Naivasha.

KRA officials and DCI detectives had camped at the premises for the better part of Thursday morning following an arrest order by DPP Noordin Haji over Sh14.4 billion tax evasion claims.

Tabitha had on Wednesday said the company has been tax compliant andadded it was inappropriate for the firm to be subjected to "humiliation and intimidation".

 

In a statement on Wednesday,  Haji said investigations revealed Karanja and her husband were found culpable of 10 counts of tax fraud.

The DPP said the KRA commissioner-general submitted an inquiry file to his office on August 18 and an audit by KRA established that Keroche Breweries had evaded payment of tax totalling Sh14,451,836,375.

The company is accused of evading payment of Sh12.34 billion VAT for stamps (Sh329.4 million), Crescent Vodka (Sh135.4 million) among other products.

Keroche is also accused of evading payment of excise duty amounting to Sh2.1 billion for the same items.

The DPP said he is satisfied that there is sufficient evidence and that it is in the public interest to charge the suspects with 10 counts of tax fraud contrary to the Tax Procedures Act of 2015.


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