Keroche CEO Tabitha Karanja's caution to new KRA boss, Haji

Keroche Breweries CEO Tabitha Karanja has cautioned KRA and the Office of the Directorate of Public Prosecutions in the manner in which they handled her company's alleged tax-evasion case.

Through a public statement on Wednesday, Karanja warned the new KRA Commissioner General James Mburu that turning his back on the due process may appear populist but is counterproductive.

"What happened last week undermines a spirit of partnership and years of investment of trust in a regulatory system," Karanja said.

The presentation of an inaccurate file of accusations to the DPP, the deliberate publishing of false information to defame and destroy the reputation of a local Kenyan company reeks of malice, sabotage and not due process."

The CEO said a public official must be held responsible for prudential judgements that an officeholder must make to perform their tasks fairly, efficiently and responsibly.

Karanja wondered how the DPP took the move to prosecute within two days after receiving the files from KRA.

"The DPP's social media post announcing his intention to charge Keroche Breweries mentioned Sh12.3 billion for VAT plus Sh2.1 billion as excise duty totalling to Sh14.4 billion. A VAT charge of Sh12.3 billion suggests Keroche Breweries had a turnover of Sh76 billion," The CEO explained.

"A day later in court, the numbers presented by the prosecution were inverted as VAT claim was changed to Sh2.1 billion while the excise duty claim went up to Sh12.3 billion." 

Karanja further urged DPP Noordin Haji to conduct proper investigations adding that entrepreneurs make sacrifices and take serious risks to grow the businesses that have added value and wealth to the country.

She said rushed decisions based on improper investigations may cause a lot of damages to any business.

The CEO expressed her concerns on how she and her husband were manhandled and subjected to public humiliation. 

She wondered if the same force would have been applied to their main competitors such as EABL or other multinationals.

" If these were our competitor EABL or other multinationals, would the same rush of judgement have been exercised? Would the directors have been manhandled and subjected to the same public humiliation as our Chairman and CEO?  Is this type of treatment only reserved for local entrepreneurs?" Karanja posed. 

The statement comes days after the arraignment of CEO Tabitha and Chairman Joseph Karanja over tax evasion totalling to Sh14 billion.

Tabitha and her husband were released on bail last Friday.

She was released on a Sh10 million bail or an alternative Sh5 million bond while her husband Joseph Karanja was released on a bond of Sh1 million or in the alternative Sh2 million bail.

Their company was ordered to deposit Sh15 million cash bail to the court.

They were released and given seven days to post their bail failure to which they will be arrested, other than Karanja.