The Kenya Revenue Authority (KRA) has vowed not to reopen the factory owned by Keroche Breweries until it offsets its Ksh22 billion ($187 million) in unpaid taxes as opposed to the Ksh351 million ($3 million) claimed by the Naivasha-based brewer.
KRA Commissioner General Githii Mburu said the decision to keep Keroche Breweries’ factory closed was prompted by the taxpayer’s refusal to honor the agreed-upon payment plan for the third time.
He adds that allowing a “tax-evading business to continue operating despite it dishonoring all payment plans promotes a culture of impunity, promotes unfairness, and allows a few to enrich themselves with public funds.”
The Kenyan tax authority further accused Keroche Breweries of violating a deal to stagger payment of a disputed Ksh22.79-billion ($193.7 million) tax bill and failing to pay duty after the taxman lifted the blockade on the plant in March.
The KRA also called out the company’s CEO Tabitha Karanja for directly attributing Keroche’s recent woes to the tax authority rather than the company’s decision to let its unpaid tax pile up to Ksh22.79 billion ($193.7 million).
Karanja, who founded the Kenyan brewer in 1997, said the recent shutdown has put the future of its employees in jeopardy, noting that the brewery’s closure will result in beer worth more than Ksh351 million ($3 million) going to waste.
Mburu revealed that Keroche violated the terms of tax arrears payments and failed to pay a single cent in duty from beer sales since its reopening in March. He also stated that Keroche was aware that the March agreement allowed the taxman to take enforcement action in the event of a payment term breach.
“We also agreed they would remain up to date on current taxes so that when they sell, they will be remitting the dues,” Mburu said. “When they paid the initial payment, and we reopened their facility, we waited for them to honor the payments, but that did not happen.”
