Court directs Keroche to pay KRA Ksh500 million

Keroche directed to pay KRA Ksh500 million

Mumbi Mutuko

March 17, 2020 10:12 AM

KRA to get Ksh500 million

Keroche Breweries CEO Tabitha Karanja (right) and her husband Joseph Karanja

The High Court ordered Keroche Breweries to pay Kenya Revenue Authority (KRA) KSh500Million.

Keroche Breweries was asked to pay the money in order for KRA to lift the agency notice issued to the company’s banks.

In his ruling, Justice David Majanja said ifKeroche fails to pay the amount in 30 days, an order stopping KRA from recovering Ksh9 billion would lapse.

“I have considered all the factors and I find that the appellant (Keroche) is a going concern and the action by the respondent may cripple its operations," the judge said.

Tabitha Karanja, CEO, Keroche Industries. Pulse Live Kenya

Orders from the court

However, KRA in a sworn statement argued that the demand for Keroche to pay the amount was not a fresh assessment.

KRA stated that Keroche was all aware of the tax liability since the case was pending before the tax appeal tribunal.

Justice Majanja directed the Tribunal to furnish Keroche Breweries with typed proceedings and copies of the judgement delivered last week, to enable the brewer to challenge taxes payable for its ready to drink Viena Ice Vodka.

Mumbi Mutuko