This archive report was first published on 25 June 2020.
On June 25, 2020, the Court of Appeal issued a ruling that could have far-reaching consequences for Keroche breweries. The court ordered the brewer to pay Kenya Revenue Authority (KRA) Sh100 million within 45 days to prevent the taxman from attaching its assets in a Sh9.1 billion case.
The ruling was made by judges Patrick Kiage, William Ouko, and Daniel Musinga, who considered the current COVID-19 situation and its impact on businesses and economies worldwide.
Keroche had gone to the appellate court after it failed to pay a Sh500 million condition set by Judge David Majanja of the High Court. The brewer argued that Majanja did not consider its inability to raise the said amount.
However, KRA was against Keroche's application, arguing that the earlier condition of Sh500 million was lenient and fair enough. The taxman urged the court to dismiss Keroche's application, citing its leniency on payment of taxes.
Appellate judges lifted the agency notices issued on Equity Bank Limited and Absa Bank of Kenya, allowing Keroche to continue its operations.
