The Kenya Association of Manufacturers (KAM) has called on Keroche Breweries to activate their membership to allow them to assist in their ongoing tax case.
Through a statement, KAM CEO Phyllis Wakiaga said they would engage the Kenya Revenue Authority (KRA) on the issue with a view to seeking a mutually agreeable solution to the impasse that saves jobs and ensures all due taxes are settled.
“From the meeting, it was agreed that Keroche Breweries will activate their membership and submit the details and documentation of the issues raised, to enable KAM to engage Kenya Revenue Authority (KRA) on the same,” it said in a statement.
This, KAM added, will be done with a view to seeking a mutually agreeable solution to the impasse that saves jobs and ensures all due taxes are settled.
“In our Manufacturing Manifesto 2022-2027, the Association has highlighted the impact of the regulatory burden on manufacturing businesses and proposed ways to build an effective and pro-industry national taxation structure,” the statement read.
KAM works to highlight and resolve specific challenges faced by manufacturers, and to address issues in the general business environment that hinder the growth and expansion of local businesses.
“We consistently ask our members to submit any issues regarding regulations and taxation for resolution to enable us offer timely and accurate intervention.
We have a members’ helpdesk that works as a hotline to receive urgent information on members’ issues that require prompt action,” it said.
The association has been able to advocate and work with the government on the review of tax policies and laws, resolving tax issues, and providing guidance on regulations for its members.
Kenya Private Sector Alliance (Kepsa) also admitted in a tweet that it was “engaging KRA on this matter” and “acknowledges and appreciates the contribution of Keroche to the Kenyan economy.”
The Naivasha-based breweries said the taxman closed the firm and warned 36 banks against giving it loans due to Sh322 million tax arrears tussle putting the firm in a tight corner as it struggles to replenish its coffers that went dry as the Covid-19 pandemic struck.
Keroche had earlier petitioned President Uhuru Kenyatta to intervene in the re-opening of the company and be given a grace period of 12 months to settle the arrears.
“Keroche is capable of remitting over Sh21 billion every year in tax and a positive consideration of this appeal will be a win for the company and KRA,” Karanja said.
The taxman wants Keroche to settle outstanding tax arrears of Sh322 million that accrued from February 2021 amid low business operations caused by the pandemic, leaving the firm constrained to meet its financial obligations like taxes and salary payments.