KRA in court seeking to block reopening of Keroche Breweries

By , K24 Digital
On Tue, 19 Jul, 2022 14:22 | 2 mins read
KRA seeks to block reopening of Keroche Breweries
Keroche Breweries CEO Tabitha Karanja. PHOTO/Tabitha Karanja/Facebook

The Kenya Revenue Authority (KRA) has moved to court to challenge a recent High Court order directing the reopening of Keroche Breweries.

In a statement on Tuesday, July 19, 2022, the taxman said the order contradicts previous orders issued by the same court.

"The Kenya Revenue Authority moved to the High Court on July 18th 2022 to vacate and set aside an order issued on 15th July 2022 in HCCC NO. E250 OF 2022 Keroche Breweries limited vs Kenya Revenue Authority, which directed the reopening of Keroche.

"It is the Authority's view that the case filed in Court by Keroche and the Orders sought go contrary to previous orders issued by the same Court and the consent agreements arrived at and signed by the two parties, " KRA said.

High Court last week directed the taxman to re-open the brewer, amid the ongoing Ksh957 million tax arrears dispute.

“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.

Keroche CEO protests closure

The orders came barely a month after Keroche CEO Tabitha Karanja protested against the closure saying more than 400 workers would be affected, and beer worth Ksh350 million go to waste.

The taxman had vowed not to reopen the brewer, accusing the brewer of disregarding a deal to stagger payment of a disputed Ksh22.79 billion tax bill and failing to pay duty after the taxman lifted the blockade on the plant in March.

Decrying harassment by the taxman, Karanja last month said the company 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.

Related Topics