The High Court has issued a directive to the Kenya Revenue Authority (KRA) to re-open Keroche Breweries Limited in Naivasha amid the ongoing tax dispute.
Conditions the court has issued for the re-opening of Keroche Breweries
The High Court ruled that the Brewer be re-opened under tough conditions as the hearing continues
This is after KRA and Keroche returned to court when they failed to settle over the earlier repayment plan leading to the closure of the Naivasha plant in June.
The court ordered that the brewery resumes its operation and also clear the tax arrears which is equivalent to Sh957 million
"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 ruling read.
The court further provided Keroche with a new payment plan that requires it to pay Sh8 million on the 30th day of each month to the KRA until the next hearing which is scheduled on September 22, 2022.
"Within 7 days of the applicant to pay the respondent Sh8 million as the first installment on the tax arrears. And thereafter to pay a similar sum on the 30th day after such payment until the next hearing date," the order read.
The court also warned KRA against closing, interrupting and intruding the brewery.
The courts decision comes barely a month the brewer closed with Keroche CEO Tabitha Karanja citing that more than 400 workers were going to be affected by the closure and beer worth Sh350 million going to waste.
“The recent closure by KRA has drained all our resources and unfortunately if nothing is done in the next seven days, we will be forced to drain down all the beer and lay down over 250 direct employees and thousands within our nationwide distribution network,” Karanja said.
The reopening of the brewer’s manufacturing plant is a reassurance news for more than 300 workers who had been sent home due to the closure.
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