This archive report was first published on 5 November 2021.
On November 5, 2021, the Kenya Revenue Authority (KRA) announced its intention to appeal a High Court decision that directed it to reinstate Mt. Kenya Breweries Limited's excise license and allow the brewery to resume operations.
The High Court, presided over by Judge Weldon Korir, had ordered KRA to resume issuing excise stamps for production and unseal the manufacturing premises, which were previously revoked.
However, KRA stated that it was within its mandate to suspend the brewery's license due to its possession of goods bearing counterfeit excise duty stamps.
"We welcome the finding of the High Court in the case of Mt. Kenya Breweries Limited vs Kenya Revenue Authority, where the Court has upheld that the Authority may suspend a license of a licensee without notice in instances of tax fraud," KRA said in a statement.
Despite the court's decision, KRA maintained that it would stick to its decision to suspend the brewery's license, citing the brewery's failure to show cause why the license should not be suspended.
According to KRA, the brewery was found to be in possession of 16,600 bottles of its product allegedly affixed with unverified excise stamps in April.
The authority also seized a vehicle from the brewery's premise, which was used to transport the goods to an undisclosed location.
Justice Weldon Korir directed KRA to return the seized car, stating that it was not within their mandate to withhold items that do not bear the fake stamps.
