Keroche Breweries will continue operations today, Friday 29, 2022 after a long tussle with the Kenya Revenue Authority (KRA).
This is following a ruling that was issued on July 28, 2022, by Justice Abigail Mshila.
“Therefore, based on the directions of the Honourable Justice Abigail Mshila, the Keroche factory will be opened tomorrow 29th July 2022 at 11:oo am. You are required to avail yourself at the premises for this purpose,” the letter by KRA reads in part.
Earlier this month Keroche Breweries sent 370 employees on unpaid leave as tax woes with KRA persisted.
In a memo to its employees, the brewer said it was going to retain a few staffers from the quality department and engineering maintenance.
“It is almost two months since the packaging line was closed by Kenya Revenue Authority due to the Tax issue which you are all aware of. The management has tried to sustain the business despite the disruptions and closure, which has left the Company paralyzed with no means of getting any income to cater for its operational cost, pay salaries and other financial obligations, leading to several months of accumulated salary arrears,” read the memo.
Mrs Karanja who is vying for the Nakuru senatorial seat on a UDA ticket claimed that because of the closure, the brewer was no longer able to support its employees and was unable to pay their Sh20 million monthly salaries.
The brewer was given a 24-month window in March to pay a tax debt totaling Sh957 million.
But according to KRA Commissioner General Githii Mburu, the brewer has declined to pay VAT from beer sales since its March reopening.
The taxman painted the company as a tax cheat that owes the government Sh22 billion in taxes.