The Kenya Revenue Authority (KRA) has vowed not to reopen Keroche Breweries, accusing the brewer of breaking a deal to stagger payment of a disputed Sh22.79 billion tax bill and failing to pay duty after the taxman lifted the blockade on the plant in March.
The tough stance against the troubled Naivasha-based-brewer has dimmed an appeal from the firm for a six-month moratorium before beginning to make monthly repayments as per the agreement signed three months ago.
In a rare show of unity, Deputy President William Ruto and his main rival and opposition veteran Raila Odinga petitioned the KRA to reopen the brewer, which the taxman closed on May 15.
Keroche, which is owned by the Karanja family, previously linked its woes to a Sh351 million demand, but KRA painted the brewer as a cheat who owes the State over Sh22 billion in unpaid taxes.
In an interview with the Business Daily, KRA Commissioner General Githii Mburu stated that Keroche has breached the terms of tax arrears payments and has failed to pay a cent in duty from beer sales since its reopening in March.
He also stated that Keroche was aware that the March agreement allowed the taxman to take enforcement action if payment terms were violated.
“We also agreed they will remain up to date on current taxes so that when they sell, they will be remitting the dues. When they paid the initial payment and we reopened their facility, we waited for them to honour the payments but that did not happen,” said Mr Mburu.
The taxpayer did not honour the payment plan agreed upon for the third time…to allow a tax-evading business to continue operating despite it dishonouring all payment plans is to promote a culture of impunity, promote unfairness and allow a few to use public funds to enrich themselves.”
Following KRA’s decision to shut down the plant for the second time, Keroche has fired over 400 employees.
Addressing the press on Monday, June 20, Keroche boss Tabitha Karanja warned the government to be wary of thousands of jobs to be lost in its tax feud with KRA.
“…it should be of their concern that about 400 direct and thousands of other indirect jobs are on the brink of being lost,” Karanja wrote on Twitter.
Karanja noted that as inflation continues to bite, job losses pose a serious threat to many Kenyans.
“They will be joining millions of other jobless Kenyans. Economic conditions continue to worsen as the cost of living, poverty and inequality punish more and more Kenyans to harrowing misery,” said Karanja.
