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

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. 

Eduardo C. Serrano
Eduardo C. Serrano
Based in Los Angeles, California, and Mexico City, Mexico, Eduardo C. Serrano is a reporter specializing in oil and gas, finance, and politics. Earlier in his career, Eduardo served as a special advisor to the administration of former Mexican President Ernesto Zedillo, and in this role worked intimately with Luis Crescencio Sandoval Gonzalez, Mexico's current secretary of defense, as well as other domestic and foreign political stakeholders. Over the years, he has worked on international lobbying and consulting projects for an array of political and private-sector clients, chambers of commerce, and business councils worldwide. In the early 1990s, Eduardo was the first Mexican-American to graduate from the prestigious Moscow State Institute of International Relations (MGIMO) in Moscow, Russia, and also studied at Culver Military Academy in the United States. He speaks English, Spanish, Russian, French, and Italian. As an interesting aside, Eduardo worked in media for a short stint in the former Soviet Union, including as a broadcaster on public television.

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