This archive report was first published on 25 June 2020.
On Thursday, the Court of Appeal directed Keroche Breweries to pay Kenya Revenue Authority Sh100 million as a condition for stopping the taxman from attaching its accounts over a Sh9.1 billion tax dispute.
The ruling came after Keroche Breweries moved to the Court of Appeal in March, fearing that KRA would attach its bank accounts for failing to pay Sh500 million to the KRA.
According to the petition filed by Keroche CEO Tabitha Karanja, the company was unable to pay the Sh500 million due to the effects of the coronavirus pandemic, including the closure of bars and night clubs, which had hurt its sales.
“The appellant has carefully examined its financial books and it is clear that it is not in a position to pay the respondent (KRA) Sh500 million,” Karanja said in the petition.
However, the Court of Appeal ruled that Keroche Breweries would have to pay Sh100 million within 45 days to avoid attachment of its accounts.
“Taking all the relevant factors into consideration, including the challenging economic circumstances the Covid-19 pandemic has put the country and indeed the entire world under, we are inclined to grant a conditional stay of execution,” the three-judge bench ruled.
The court will hear Keroche’s petition on Monday, offering the brewer a three-day reprieve.
