High Court Orders KRA to Reopen Keroche Breweries
The High Court has ordered Kenya Revenue Authority (KRA) to immediately reopen Keroche Breweries Ltd pending the hearing and determination of a tax dispute between the two parties.
The order was issued on Friday after the two parties returned to court after the Naivasha-based beer manufacturer defaulted on an earlier agreement to repay determined tax arrears amounting to Sh957 million across 24 months. This prompted the tax authority to shut down Keroche Breweries on May 15th.
In its defense, Keroche says it was unable to honor the payment plan, citing a tough operating environment and the short-run to the payment of the first installment covering the tax arrears.
The court has sanctioned a new repayment schedule that requires Keroche to pay an initial Sh8 million as the first installment on the tax arrears and then pay a similar amount on the 30th day of each month until the next hearing date.
The latest reopening order requires KRA to unseal the brewer’s repackaging line and stores and reactivate the Excisable Goods Management System (EGMS) at the plant.
The next hearing date for the suit will be on September 22nd, 2022.
Early this month, Keroche sent home 370 workers on indefinite unpaid leave after operational funds dried up following the taxman’s closure of the company on May 15th. Keroche CEO Tabitha Karanja said the company was unable to shoulder a workers' monthly bill of Sh20 million.
Comments (6)
One very positive outcome from the corrupt Kenyan courts. KRA should be billed for the revenue lost by Keroche during the shutdown. The power of KRA to close businesses that some of their employees don't like must be put to an end,
Duh! How does KRA expect to get paid when the operations are shut down? Or is some tenderpreneur waiting for an auction?
Kenya needs to reform bankruptcy laws to allow for reorganization over a set period of time to allow for going-on concerns to restructure their liabilities or get liquidated.
These swift seizures like the Keroche one are bot conducive for a healthy business environment.
Uhuru’s anger because lady joined Uda. Bure kabisa
Kweli KENYA ina wenyewe.
KRA used as a henchman by henchman OuruOjinga! The reign of terror is coming to an end!!!
The issue is Keroche breweries never honored a previous agreement and they were shut down .Pure nonsense that it is political or has got anything to do with their harmful products .They must pay they are not special even if the court order has bought them some time waendelee kufungiwa.The debt continues to accrue if they could not pay the previous smaller amount iyo kubwa wataweza?