This archive report was first published on 9 June 2020.
June 9, 2020
Keroche Industries Seeks Relief in Sh9 Billion Tax Dispute ¶
Keroche Industries, a Naivasha-based brewer, has moved to the Court of Appeal to stop Kenya Revenue Authority from attaching its accounts over a Sh9 billion tax claim.
The company, which has 290 employees, claims it is unable to pay the Kenya Revenue Authority (KRA) Sh500 million as directed by the High Court in March. This, it says, would cripple its operations and lead to the automatic collapse of the company.
According to Tabitha Karanja, the CEO of Keroche Industries, the company's average annual tax liability over the last five years has been Kshs. 1.5 billion. However, the Covid-19 pandemic has negatively impacted the company's business, with the current output below 20 percent.
The company is seeking temporary orders from the Appellate court to suspend plans by KRA to enforce agency notices to its bankers, Equity and Absa Banks. It also wants KRA or its agents restrained from taking any steps towards collection of any monies pursuant to the agency notices.
“Pending hearing and determination of this application inter-parties, the agency notice issued on Equity Bank limited and Absa Bank of Kenya by KRA on March 11, 2020 and any other agency notice issued on any of the Keroche breweries bankers and debtors, be and are hereby stayed,” the application stated.
