Tens of workers are set to lose their jobs at Keroche Breweries following a decision by the Kenya Revenue Authority to close down the company over a Sh332 million tax arrears.
The shut-down comes even after the Naivasha-based brewer had asked the taxman for a grace period to clear the tax obligation, saying the Covid-19 pandemic had adversely affected its revenue flows.
Chief Executive Officer Tabitha Karanja has petitioned President Uhuru Kenyatta to intervene, saying efforts to get an audience with the KRA commissioner General had hit a snag.
“We are sure that this issue can be sorted amicably as we are ready to pay the required taxes if KRA opens up our brewery,” Karanja said.
The brewery has been locked in a protracted tax war with KRA forcing the company to close down on several occasions.
Karanja, who addressed the press on Friday flanked by workers, vowed to soldier on, noting that at the height of its operations, the company was remitting over Sh200 million to the exchequer every month.
She said Sh332 million tax arrears, which are the genesis of the current crisis, had accrued from February 2021 which saw the firm reach a deal with KRA on how to resettle it.
“However in December 2021, KRA closed the factory and further issued agency notices to 36 banks and we could not produce or access any finances to assist in settling the arrears,” Karanja said.
"Efforts to renegotiate a deal with the KRA Commissioner-Domestic Taxes Department and get revenue stamps had been unsuccessful."
Karanja revealed that the authority had closed down the factory with over two million litres of beer worth Sh512 million still in tanks. She said the liquor would go to waste in seven days.
“This has drained all our resources and unfortunately if nothing is done in the next seven days, we will be forced to drain all the beer and lay off over 250 direct employees,” she said.
In her appeal to the President, Karanja requested for the reopening of the factory and for KRA to give them a grace period of twelve months to clear the tax arrears.
“Keroche is capable of remitting over Sh21 billion every year in taxes and a positive consideration of this appeal will be a win for both the company and KRA.”
Karanja, who has expressed interest in the Nakuru County senatorial seat, challenged Parliament to formulate laws that would in future protect and cushion local enterprises.
“The laws should mandate the CS Treasury to give waivers or moratoriums to investors during such difficult times brought about by a global pandemic,” she said.
Edited by Mercy Asamba
