Keroche Breweries has moved to the Court of Appeal to stop the taxman from seizing its assets over disputed Sh9.1 billion tax arrears.
High Court judge David Majanja on March 16 ordered Keroche to pay KRA Sh500 million within 30 days as a condition to stop the taxman from recovering the Sh9.1 billion, pending the hearing of the case.
The firm has since been unable to pay the money within the stipulated time and is apprehensive that KRA will proceed to attach its properties.
In its appeal, Keroche, through lawyer Nelson Havi, argued that it was unfair for the judge not to consider the firm's inability to pay the Sh500 million in the wake of the Covid-19 pandemic.
Havi said the Naivasha-based brewer was currently servicing a loan at Absa Bank in monthly instalments of Sh57 million and if the KRA notices are effected, they would cripple the company’s operations.
During a hearing of the case at the High Court, Keroche CEO Tabitha Karanja claimed Covid-19 had brought unprecedented challenges to its business, which involves the sale of alcoholic beverages through hotels, bars and restaurants.
Edited by Henry Makori
