Keroche pleads for 18-month grace period to clear tax arrears

KRA on Tuesday defended its decision to close down Keroche Breweries.

In Summary

• Keroche chief executive officer Tabitha Karanja told KRA the 18 months of uninterrupted operation is enough to clear the outstanding arrears.

• Kenya Revenue Authority on Tuesday defended its decision to close down Keroche Breweries.

Keroche Breweries CEO, Tabitha Karanja addresses the media on the closure of the company by KRA over unpaid taxes on Wednesday, March 9, 2022.
Keroche Breweries CEO, Tabitha Karanja addresses the media on the closure of the company by KRA over unpaid taxes on Wednesday, March 9, 2022.
Image: FREDRICK OMONDI

Keroche Breweries is now requesting Kenya Revenue Authority to give them an 18-month grace period to pay all its tax arrears.

In a press briefing on Wednesday, Keroche chief executive officer Tabitha Karanja said the requested period of uninterrupted operation is enough to clear the outstanding Sh832 million tax arrears.

"Our humble appeal to the Commissioner-General is to kindly but urgently re-open our plant to prevent huge losses. We would wish to resume production, sales and distribution of our products to protect and safeguard the livelihoods of thousands of Kenyans employed by the company both directly and indirectly."

She has requested a meeting with the KRA boss to discuss her proposed payment plan.

Karanja said the timing and demands by Authority had not allowed the company pay its arrears hence the closure.

She insists the dispute between KRA and Keroche Breweries is a business war based on competition but also claims political divides have some influence.

Kenya Revenue Authority on Tuesday defended its decision to close down Keroche Breweries after years of protracted tax disputes.

The decision by the authority to shut down the brewer last week over Sh332 million tax arrears elicited varied reactions among sections of Kenyans.

Karanja had asked the taxman for a grace period to clear the tax obligation saying the Covid-19 pandemic had adversely affected its revenue flow.

However, KRA on Tuesday justified its action while highlighting years of tax disputes with the Naivasha-based brewer.

It said turning a blind eye on the Sh332 million tax arrears would be unfair to other Kenyan brewers.

"By allowing any taxpayer to continue collecting taxes and not remitting the same, KRA will not be executing her mandate of ensuring that taxes that fall due are remitted in a timely manner and that all taxpayers remit their fair share of taxes," it said in a statement.

The tax collector said it would not go for a shilling more and or a shilling less from the brewer.

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