This archive report was first published on 23 August 2019.
Naivasha-based Keroche Brewery, a major player in the Kenyan beer market, has been embroiled in a long-standing feud with the State and competitors since its establishment in 2003.
Founded by Joseph Karanja and his wife Tabitha Karanja, the brewery has navigated numerous challenges, including tax compliance issues with the Kenya Revenue Authority and product authentication disputes with the Kenya Bureau of Standards.
One of the earliest challenges faced by the brewery was in 2003 when Kebs refused to issue stickers to authenticate its alcoholic brands, leading to the confiscation and destruction of its products in the main market in central Kenya.
Competition from cheaper counterfeit products was another significant hurdle for the brewery, with Tabitha Karanja stating in a previous interview, 'Unfair competition from companies that produce similar counterfeit products that are extremely cheaper is something we battled for years.'
Despite these challenges, the brewery managed to penetrate the local market until 2007 when a tax raise forced it out of the wine business. However, the brewery's determination to expand its product line led to the launch of Summit Lager in 2008, which was graced by former Prime Minister Raila Odinga.
However, even this move was met with headwinds after voters in central Kenya turned against Tabitha Karanja for supporting 'the opposition', adversely affecting the brewery's business.
More recently, the brewery has been embroiled in a dispute with the Kenya Revenue Authority over a Sh1.3 billion tax bill relating to its ready-to-drink vodka, which led to the cancellation of its manufacturer's license in 2016.
On October 24, 2008, Keroche Breweries launched Summit Lager in a ceremony graced by former Prime Minister Raila Odinga. But even this move ran into headwinds after voters mainly from central Kenya turned against her for supporting ‘the opposition’, a move that adversely affected her business. Keroche went to court in 2016 over a decision by KRA to cancel its manufacturer’s licence over a dispute on Sh1.3 billion tax bill relating to its ready-to-drink vodka.
On June 24, 2023, the Director of Public Prosecutions (DPP) Noordin Haji ordered the arrest of Joseph and Tabitha Karanja for allegedly failing to remit Sh14 billion tax from 2015. An hour after the order, Mrs Karanja termed the current issue as new war by her competitors.
Speaking on phone, Mrs Karanja said that she is a law-abiding citizen, and is ready to present herself to the investigators. “I am shocked by the new allegations levelled against me, my husband and Keroche Breweries and this is pure malice,” she said. She questioned the timing of the arrest orders — just two weeks after she launched the KB Lager, noting that the move was meant to intimidate her.
Related Topics: Keroche, Sh14 billion tax evasion, Tabitha Karanja
