This archive report was first published on 18 May 2020.
Keroche Fails to Meet Deadline, Faces Asset Seizure ¶
As of May 18, 2020, Keroche Breweries Limited had failed to meet a court deadline to pay Kenya Revenue Authority (KRA) Sh500 million, setting the stage for asset seizure.
The company had been directed to pay the amount within 30 days, which has since lapsed without depositing the money.
According to a petition filed by Keroche CEO Tabitha Karanja, the company cannot borrow from banks because it is running on overdrafts and owes lenders like Absa Kenya.
“This is, however, not possible at the moment since the appellant (Keroche) is already heavily indebted on account of overdraft facilities and numerous bank loans from Absa Bank Kenya Plc, which it is required to service through monthly instalments of Sh57,000,000,” she said.
Justice David Majanja had on March 16 ordered Keroche to pay KRA Sh500 million as a condition to stop the taxman from recovering Sh9.1 billion from the brewer.
The taxman had ordered five top banks to transfer cash in Keroche’s bank accounts to the agency’s coffers, grounding the brewer’s operations.
Mr. Karanja also expressed concerns that the company would be greatly affected and with it, the livelihoods of some 300 employees, if KRA is allowed to move in.
