KRA sues Keroche for not honouring tax promise

Kenya Revenue Authority (KRA) has accused Keroche Breweries of failing to honour tax payment agreements which informed the reopening of the brewer in July.

In a court application KRA says the brewery has failed to make payments as agreed prior to reopening on July,29, 2022.

This is after Keroche defaulted on a new payment plan ordered by the same court which required the brewer to make monthly payments on tax arrears and honour current taxes.

According to the application by the taxman, Keroche has not honoured payments amounting to Ksh.30.3 million including the payment of Ksh.16 million in two equal tranches in August.

Keroche is further in default of Ksh.14.3 billion in current taxes.

“Keroche Breweries Limited has been adamant in disregarding the court order of July 14,” KRA’s application to the court read.

The taxman decried that despite issuing letters demanding the payment of the taxes from Keroche on July 21, August 3, August 15, and August 24, the brewer has failed to comply with the order and pay any taxes as ordered or when they fall due.

“Keroche Breweries Limited has now proceeded to decline to comply with their obligations under tax law and due dates to accounting for tax being the end of the month,” KRA says in a fresh court petition.

The revenue agency added that it is unable to enforce the taxes while the brewer collects taxes from consumers and fails to remit the same,” said the taxman.

KRA urged the court to address the case on a priority basis; or otherwise, the Respondent(Keroche) will continue to deliberately ignore the orders of the court.

The agency wants the court to find Keroche CEO Tabitha Karanja and Director Joseph Muigai Karanja to be in contempt of court and face judicial sentencing for the disobedience.

KRA reopened Keroche Breweries on July 29 after the latter moved back to court to petition for a new repayment plan on outstanding tax arrears.