This archive report was first published on 22 August 2019.
On August 22, 2019, a dramatic night unfolded at Keroche Breweries in Naivasha as CID officers arrived to arrest the company's CEO and chairman, Tabitha Karanja and Joseph Muigai Karanja, respectively.
According to reports, the couple had spent the night in their offices to avoid arrest following an order by the Director of Public Prosecutions (DPP) to apprehend them over tax evasion allegations.
Naivasha Chief Magistrate Kennedy Bidali had issued a warrant of search and arrest for the entrepreneurs, but once the order was served, the two walked out of their offices as the company's distributors cheered them on.
However, the reprieve was short-lived as the couple was later driven to the DCI headquarters in Nairobi for further questioning.
Also arrested during the raid were two security managers from the company, who were taken to Naivasha police station awaiting arraignment in court.
Naivasha DCIO Kennedy Njoroge confirmed the arrest of the two managers, stating that they would be charged with obstruction.
Speaking on phone, Mr. Karanja expressed confidence that the truth would eventually be revealed, stating, 'This is not about tax but about our recently launched products, but the truth shall set us free as we have not defaulted in tax as alleged.'
The DPP had issued orders to arrest the couple over allegations of failing to remit tax running into Sh14 billion from 2015, a claim the company has denied.
Investigations revealed that the company evaded paying Sh12.34 billion Value Added Tax (VAT), Sh329.4 million for stamps, and Sh135.4 million for Crescent Vodka among other products.
