KRA finally agrees to re-open Keroche Breweries

Keroche will reopen on Friday at exactly 11:00am

Keroche CEO Tabitha Karanja speaks during a press conference

The Kenya Revenue Authority (KRA) has agreed to re-open Keroche Breweries Limited as per a Court order issued on Thursday, July 28, 2022.

In a directive given by Justice Abigail Mshila, Keroche will resume operations on July 29, 2022 at exactly 11:00am.

“During the mention the Honorable Judge categorically stated that the application for contempt of Court would be heard by the said judge on August 2nd, 2022 and during the hearing she would not give audience to the Authority’s Counsel to address the court unless the Keroche factory is opened immediately.

"Therefore, based on the directions of the Honorable Justice Abigail Mshila, the Keroche factory will be opened tomorrow July 29th 2022 at 11:00am. You are required to avail yourself at the premises for this purpose,” directs a letter addressed to Keroche Breweries.

"This evening, I have received a letter from KRA referencing today’s Court Session and the directions issued by the Court. In the said letter, KRA has agreed to re-open our factory tomorrow at 11:00am. This is good news," Karanja noted.

Keroche Breweries Limited CEO Tabitha Karanja expressed excitement upon receiving the KRA letter, ordering the re-opening of her company, promising to honour the agreement that led to the re-opening.

“I thank KRA for finally acceding to the sanction of the Court. I thank the Judiciary for their impartiality and judicious view of the underlying circumstances.

“As Keroche Breweries, we solemnly undertake to pay our taxes as and when they fall due. In good time, we shall indeed settle all the underlying tax disputes. To our customers, stakeholders and well-wishers, we appreciate your concern and your continued great support,” Tabitha Karanja affirmed.

The reprieve for Keroche Breweries come days after Karanja filed another petition against the KRA Commissioner Githii Mburu for disregarding a High Court order to re-open the Naivasha plant.

On July 14, 2022 the High Court issued orders for the firm to re-open on condition that the brewer paid Sh8 million on the 30th day of each month to the KRA until the next hearing which was scheduled for September 22, 2022.

On June 20, Tabitha Karanja expressed the pain of watching more than 400 jobs being put on the line as well as the disposal of alcohol worth hundreds of millions after the closure of Keroche by KRA.

Ms Karanja revealed how the company went from making close to Sh500 million per month to below Sh50 million.

The dwindling revenues have compounded the brewer's cash flow problems, resulting in defaulting of tax payments to the Kenya Revenue Authority.

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