Home » Keroche CEO Tabitha Karanja battles state capture in $112.80-million tax dispute

Keroche CEO Tabitha Karanja battles state capture in $112.80-million tax dispute

by Yusuf Abdulfatai
Tabitha Karanja

Keroche Breweries CEO Tabitha Karanja is presently in the midst of a legal battle against the Kenyan government over allegations of tax evasion. 

The government has accused the brewer of evading taxes to the tune of Ash 14.1 billion ($112.8 million), a claim which the company vehemently denies.

This is not the first time that the company has faced such allegations, as the Kenyan government has been criticized in the past for using tax disputes as a tool for state capture. 

In this case, however, the company is fighting back and has taken the matter to court. 

The dispute has been ongoing since 2018, but the case has gained new momentum in recent months as more and more details about the alleged tax evasion have come to light.

Karanja, who founded Keroche Breweries with her husband Joseph Karanja in 1997, has been a vocal advocate for the rights of small and medium-sized enterprises in Kenya. 

She has spoken out against what she sees as an unfair system that favors larger, well-connected companies while stifling the growth of smaller businesses.

In recent interviews, Karanja has described the tax dispute as an attempt by the government to bully the company into submission. 

She argues that the amount being demanded by the government is exorbitant and that the company has always been in full compliance with all tax laws and regulations. 

The company has stated that it has evidence to support its claims and that it will fight the case to the end.

The outcome of this case will have far-reaching implications for the business community in Kenya, as well as for the country’s legal system. It will serve as a test case for the government’s commitment to fair and transparent business practices, as well as the ability of the courts to deliver impartial justice in cases of state capture.

Keroche Breweries is one of the largest producers of alcoholic beverages in Kenya, employing over 2,000 people and contributing to the country’s economy through the creation of jobs and the payment of taxes. 

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