This archive report was first published on 21 August 2019.
On August 21, 2019, the Director of Public Prosecutions Noordin Haji ordered the arrest of Tabitha and Joseph Karanja, founders of Naivasha-based Keroche Breweries, for alleged tax evasion in their alcohol production business since 2015.
The Kenya Revenue Authority (KRA) has been at odds with Keroche over tax computation methods, with the brewer insisting on a lower excise duty rate than KRA's calculation.
According to KRA, Keroche had evaded payment of Sh9.5 billion from Vienna Ice alone, and a total of Sh14.4 billion in taxes.
Mr. Haji stated that an audit by KRA established sufficient evidence to charge the Karanjis with 10 counts of tax fraud.
The two Keroche directors are expected to appear in court, as part of a crackdown on suspected tax evasion in the alcohol sector.
