Keroche Breweries Set to Settle Ksh 957Mn Tax Dispute With KRA

Keroche Breweries has reached a deal to pay undisputed tax arrears to Kenya Revenue Authority n the next 24 months beginning January 2022.

Keroche Breweries CEO Tabitha Karanja [ left] and the company's chairman Joseph Karanja toast to the new Vienna Ice extra strong lager during the launch at the company's plant in Naivasha. PHOTO | KNA

Naivasha-based Keroche Breweries is set to settle a KSh957 million tax dispute with Kenya Revenue Authority in 24 months starting from January 2022.

The development comes after a week-long engagement between the two.

“The addendum agreement which sets the stage for the reopening for production of the Naivasha based brewery will see Keroche settle an undisputed tax amount of Sh957,000,000 over a period of twenty-four (24) months starting from January 2022,” KRA said in a statement.

Earlier, the brewer had appealed to KRA  to grant it a grace period of 18 months to clear taxes in arrears while paying the current taxes as they fall due.

“Our humble appeal to the Commissioner-General is to kindly but urgently re-open our plant to prevent huge losses. We would wish to resume production, sales, and distribution of our products to protect and safeguard the livelihoods of thousands of Kenyans employed by the company both directly and indirectly,” Keroche chief executive officer Tabitha Karanja had said in a statement.

Following the current development with the signing of the payment, she said they are committed to abiding by the agreement.

“As a law-abiding entity, the company gives a renewed commitment to ensure that they meet their statutory obligations as they fall due. This will ensure that we make our fair contribution to the Exchequer for building our Kenyan Economy,” Ms. Karanja said in a statement emailed to Khusoko.

As part of the agreement, KRA will lift agency notices issued to thirty-six banks.

“The KRA seeks to encourage dialogue and amicable resolution of tax disputes,” KRA says. 

About Keroche Breweries

Keroche Breweries was established in August 1997, at the home of the owners, Joseph and Tabitha Karanja.

Keroche is known for its natural, healthy and sugar-free products ranging from Beers: Summit Lager, Summit Malt, Spirits: Crescent Vodka, Crescent Brandy, Crescent Whisky & Crescent Dry Gin, Ready to Drink Vodkas: Viena Ice & Viena Ice – Lemon Twist and Wines: Valley Wine Pinotage, Valley Wine Chenin Blanc & Valley wine Sauvignon Blanc.

The company has a capacity to produce 1.1 million hectolitres per year of beer and spirits and a wine line capable of producing 10,000 bottles per hour and 15,000 bottles per hour respectively.

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