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Kenya: KRA Closes Down Keroche Breweries Over Tax Dispute

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The Kenya Revenue Authority (KRA) has shut down local brewer, Keroche Breweries for reneging on the tax agreement on the settlement of tax arrears.

Keroche breweries sought a moratorium to settle the Sh 322 million tax arrears noting that the taxman in May shut down the Naivasha-based brewer despite initial agreements.

While addressing the press, the firm’s Chief Executive Officer Tabitha Karanja said that on May 15, the taxman shut down the brewery rendering 10,400 employees jobless and making life more difficult for several farmers who are now unable to sell their produce to the firm.

“After negotiating with a large team of your commissioners and top officers, we were compelled to enter an agreement whose implementation could not be supported by the company’s performance. Our pleas for time to resume payment on attaining full operational performance were rejected, but the KRA   promised that we would walk the recovery journey together,” Karanja said.

“Unfortunately, KRA took enforcement action on May 15 2022, without any prior notice, and closed down the brewery,” she said in a statement seen by Capital FM.

In March, the brewer was shut down over accrued tax arrears but later Keroche asked for an 18-month grace period to resume operations noting its willingness to return to the table with KRA to work out a more feasible payment plan.

It was later reopened and was issued 24 months to pay tax arrears starting with a Sh 21 million goodwill.

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