SH8 MILLION ARREARS CLEARED

Court summons Keroche bosses as tax row rages

Ruling on compliance with court orders pushed to October 27 after directors no-show.

In Summary
  • There arose a dispute as to how much the company was to pay KRA on August 6 and when the next instalment would be.
  • Judge said parties misunderstood his orders, which directed that Keroche pays Sh8m to KRA on August 6 and another Sh8m after 30 days, which would fall on September 6.
Beer production at the Naivasha-based Keroche Breweries Limited
Beer production at the Naivasha-based Keroche Breweries Limited
Image: GEORGE MURAGE

The directors of Keroche Breweries Limited have been directed to physically appear in court on October 27.

The company is embroiled in a court case with the taxman over tax arrears.

The Kenya Revenue Authority had sought court orders to compel the company to pay its tax arrears following its reopening on July 29.

Keroche had promised to pay Sh8 million on August 6 and another Sh8 million 30 days from the first instalment.

KRA returned to court for fresh orders, saying Keroche had failed to honour the agreement.

“Keroche Breweries Limited has been adamant in disregarding the court order of July 14 notwithstanding that, the order was issued in the presence of the counsel of Keroche Breweries Limited, the same was not and has not been complied with to date,” KRA said in its application.

Justice Alfred Mabeya on September 6 directed Keroche directors, including chairman Joseph Karanja and chief executive officer Tabitha Karanja, to physically appear in court on September 20 for a ruling.

However, the directors failed to show up. 

“Mr Karanja is indisposed and Tabitha is at his care,” lawyer Kibet told the court.

Tabitha was elected Nakuru senator on the UDA ticket and has been appointed Senate deputy majority leader by the ruling party.

Kibet said Tabitha had also asked the court to allow her to attend an induction meeting for senators since it was crucial for her as the deputy majority leader.

But KRA lawyer Ochieng said no documents had been tabled in court to show that Joseph was sick.

“Nothing stopped them from making an application to appear virtually. It seems an induction is more important to her than appearing before this court,” Ochieng said.

He said the directors were serial contemnors and were employing delaying tactics to extend the period for paying their tax arrears.

Earlier, there arose a dispute as to how much the company was to pay KRA on August 6 and when the next instalment would be.

KRA said Keroche was to pay Sh8 million on August 6, another Sh8 million on August 30 and current taxes worth Sh14.2 million.

Kibet however said they had paid the Sh8 million due and thus purged the contempt.

But Mabeya said the parties misunderstood his orders, which directed that Keroche pays Sh8 million to KRA on August 6 and another Sh8 million after 30 days, which would fall on September 6.

He, therefore, directed that the parties to advise their clients accordingly and set the date for the ruling on October 27.

“On that day, the contemnors must personally attend court. The orders that are in force will continue to be adhered to,” Mabeya directed.

Edited by Kiilu Damaris

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