KRA shuts Keroche, CEO Tabitha Karanja appeals to Uhuru

CEO Tabitha Karanja speaks after KRA shuts Keroche operations

The taxman has shut operations of Naivasha-based beer maker Keroche Breweries, leaving hundreds of jobs hanging in the balance. 

The Kenya Revenue Authority (KRA) last month closed the firm, owned by entrepreneur Tabitha Karanja, over financial woes owing to its protracted battle with the taxman.

KRA is demanding Sh322 million in taxes from the manufacturer. 

Keroche defaulted on an earlier agreed tax repayment plan in the latest chapter of its long-running battle over unpaid taxes.

“The recent closure by KRA 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 and thousands within our nationwide distribution network,” Ms Karanja said.

She lamented that KRA also issued agency notices to 36 banks to block the company’s financing, further exacerbating the situation.

“This completely collapsed all our business operations since we could neither produce, sell nor access any financing from any banks to assist in settling the arrears,” she said.

Ms Karanja added that they have over two million litres of beer in their storage tanks worth Sh512 million which needs Sh30 million monthly to maintain. 

She is now appealing to President Uhuru Kenyatta to intervene in reopening the plant as efforts to get an audience with KRA commissioner-general Githii Mburu hit a wall.

"At this point, they refused to accept further negotiations and the office of the Commissioner-Domestic Taxes Department advised us that their hands were tied...and that we should seek support from the office of the Commissioner-General," Ms Karanja said. 

The company has also requested a 12-month grace period to pay the tax arrears. 

The CEO attributed the current financial crisis to Covid-19 -- which saw the company scale down operations following curbs introduced by the State to reduce the spread of the virus.

At the height of the pandemic, the firm halted major operations and only retained staff offering critical services such as maintenance.

The company has enjoyed steady growth since its inception 18 years ago. However, it has been in the crosshairs of the taxman in recent years after Mr Mburu trained the agency's guns on the alcohol industry in a quest to seal tax loopholes in the sector.