KRA Goes After Keroche Again

The Kenya Revenue Authority (KRA) has moved to court over what it terms as failure by Keroche Breweries to honour the tax payment agreement which informed the re-opening of the brewer in July.

KRA says Keroche Breweries was to pay Ksh 8 million on July, 6 and another Ksh 8 million on August 30 together with the current taxes amounting to Ksh 14.3 million but has not complied with the court order.

Justice Alfred Mabeya has certified the application as urgent and the case will be heard on Tuesday next week.

On 29^th of July this year, Keroche Breweries re-opened its premises after a protracted legal battle pitting it with the KRA over unpaid taxes.

The taxman had shut Keroche Breweries on May 15, this year after the Naivasha-based brewer failed to honour a repayment plan that would have seen it settle Ksh 957 million in taxes liability in 24 months.

On July 15, this year, the High Court ordered KRA the reopen the brewer pending the hearing and determination of a suit pitting the two parties.

KRA went to court to set aside the reopening of the plant, arguing that the High Court order contravened the initial order where Keroche had been given a repayment schedule to settle its tax arrears until the next hearing date on 22^nd of this month.

KRA’s application to the court reads “Keroche Breweries Limited has been adamant in disregarding the court order of July 14 2022 notwithstanding that the order was issued in the presence of the counsel of Keroche Breweries Limited, the same was not and has not been complied with to date.”

Through its application, the taxman argues that the brewer is deliberately ignoring court orders, which is frustrating its efforts of collecting taxes when they become due and payable.

Justice Alfred Mabeya in a statement dated 1^st of September said the application is certified as urgent and has earmarked its hearing for 6^th of this month.