In Summary

•The tax dispute with KRA started back in 2008.

•Keroche is ranked second after EABL in beer production in the country.

KRA officials reopen Keroche Breweries on 29/7/22 two weeks after Justice Aflred Mabeya directed the authority to unseal the packaging lines, stores and reactivate the Exercisable Goods Management System for the company. The company was closed two months ago defaulting on an earlier agreed plan to repay tax arrears totaling to Sh300m.
Keroche KRA officials reopen Keroche Breweries on 29/7/22 two weeks after Justice Aflred Mabeya directed the authority to unseal the packaging lines, stores and reactivate the Exercisable Goods Management System for the company. The company was closed two months ago defaulting on an earlier agreed plan to repay tax arrears totaling to Sh300m.
Image: George Murage

Naivasha based-Keroche Breweries is expected to fully resume business on Monday next week.

This follows the reopening of its factory by Kenya Revenue Authority (KRA) on Friday, after a three month tax-row.

The authority unsealed the brewery’s packaging lines, stores and reactivated the Exercisable Goods Management System as directed by the High Court two weeks ago.

The move now paves way for the company to recall over 400 workers who were sent home two weeks ago on unpaid leave.

Last month, the tax-collector closed down the Naivasha based brewery after defaulting on an earlier agreed plan to repay tax arrears totaling to Sh300m.

The authority went ahead to issue agency notices to several banks against lending the brewer, fully paralyzing the operations of the company.

According to KRA deputy commissioner in charge of enforcement Mutembei Nyaga, they reopened the brewery following a court order issued on July 14.

He denied that the authority had dilly-dallied in obeying the order adding that the issue was still in court and hence the delay.

“Despite the court order we have appealed at the High Court and we hope that the matter will be heard and determined in the coming days,” he said on Friday.

Mutembei was however coy on whether Keroche had paid the Sh8 billion as directed by the High Court, and how much the brewery owed KRA in tax arrears.

On his part, Keroche general manager in charge of sales and distribution Nicholas Kichir welcomed the move, noting that they had lost millions of shillings.

He said that starting from next week, they would recall all their workers with their products set to hit the market in two week’s time.

“We were incurring Sh30 million losses every week in maintenance and we have lost our market share which will take time to recover,” he said.

Kichir added that the brewery would take around six months to fully recover if there were no disruptions.

This year, the brewer has only operated for two months.

Last week, Justice Alfred Mabeya directed KRA to unseal the packaging line, stores and reactivate the Exercisable Goods Management System.

The company was also directed to pay the taxman Sh8 million within seven days.

Last Monday, KRA had moved to court on a certificate of urgency to appeal the case.

Justice Mshila Abigail however rejected the application and redirected the matter to Justice Mabeya.

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