Azimio La Umoja presidential candidate, Raila Odinga, has come to the defence of Keroche Breweries after the Kenya Revenue Authority (KRA) shut down the beer manufacturer for failing to pay tax arrears.
Raila stated on Friday, June 17, during a meeting with Mount Kenya Foundation leaders that closing Keroche is unnecessary given the number of people the company employs.
Odinga stated that the government should regulate taxes and provide investors with good tax payment laws that allow them to be compliant.
“It is not right to become punitive in terms of taxes. If taxes are too high, there is a tendency to evade them, but if they are low and manageable, people will pay. Don’t close a business because the owner has defaulted in paying taxes,” Odinga stated.
Furthermore, the former prime minister stated that the government should assist the company in regaining its footing rather than suppressing it with exorbitant demands.
“If they are not able to pay today, spread it out. They a debt and they are Kenyans where will they run to? If they cannot pay help them to continue with business so they can pay tomorrow. That is how we do business. Don’t kill the goose that lays the golden egg.”
According to Raila, one way of getting a country out of poverty is through private businesses and therefore the government needs to create an enabling environment for the private sector to thrive.
“The private sector is the engine for economic growth worldwide,” he said.
On June 14, The Naivasha-based Company which was shut by the Kenya Revenue Authority (KRA) over unsettled taxes.
This was the sixth time in one year that KRA has closed down the Naivasha-based company leaving it to incur losses running to millions of shillings.
In March, KRA closed the brewery over Sh300m tax arrears but this was resolved a couple of weeks later with fresh and harsh terms and conditions.
Raila wooed the region even more by promising to reduce agricultural costs and create laws that favor marketing their produce.
The Azimio presidential candidate stated that it is prudent for the government to continue improving infrastructure in the country and creating an enabling environment for business.
Raila defended Keroche as one of the businesses from the region that has benefited residents by creating jobs in the country.
Although Keroche CEO Tabitha Karanja is running on a UDA ticket, the Odinga family remains close friends with the Karanjas.
