Keroche re-opens after court sets tax payment plan

Troubled Naivasha-based brewer Keroche will now pay Sh8 million to the taxman per month until the next hearing of a case against the Kenya Revenue Authority (KRA).

This after the High Court directed the taxman to re-open Keroche Breweries, amid the ongoing Sh957 million tax arrears dispute, weeks after KRA said it will not reopen premises.

“An order be and is hereby issued that the Defendant/Respondent, taxman, its officers, agencies, associates to unseal the packaging line, the stores and to reactivate the Exercisable Goods Management System (EGMS) in the Applicant’s Keroche Breweries processing plant in Naivasha and to generally allow the applicant to carry on business forthwith,” the court said in its ruling last week.

The court’s decision comes barely a month after the brewer closed shop, with Keroche CEO Tabitha Karanja saying more than 400 workers were going to be affected by the closure, and beer worth Sh350 million going to waste.

The taxman had vowed not to reopen the brewer, accusing the brewer of disregarding a deal to stagger payment of a disputed Sh22.79 billion tax bill and failing to pay duty after the taxman lifted the blockade on the plant in March.

KRA had vowed not to reopen

Last month, the row deepened further when Keroche said it was unable to pay the agreed amount, noting that they had signed it under duress which forced KRA to close down the company.

The High Court ordered that the brewery resume its operation and also clear the Sh957 million tax arrears.

In the revised payment plan for Keroche the brewer will be required to pay Sh8 million on the 30th day of each month to the KRA until the next hearing which is scheduled on September 22, 2022.

As a surety Keroche was required to within 7 days of the applicant, to pay the respondent Sh8 million, as the first instalment on the tax arrears.

KRA on the other hand was barred from closing, interrupting and intruding on the brewery’s operations.