Keroche CEO, Tabitha Karanja Pleads With President Uhuru To Intervene As Keroche Faces Possible Closure Over Tax Evasion.

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  • Tabitha Karanja has petitioned President Uhuru Kenyatta to intervene in her ongoing tax war with the Kenya Revenue Authority.

 

  • Keroche Industries CEO said the company risks losing millions of money following the closure of the brewery on February 1, 2022

 

 

  • The founder of Keroche Breweries is involved in a bitter tax war of KSh 322 million with the authority which led to the closure

Keroche Breweries chief executive officer Tabitha Karanja has petitioned President Uhuru Kenyatta to intervene in her ongoing tax war with the Kenya Revenue Authority.

 

 

 

Tabitha Karanja has petitioned President Uhuru Kenyatta to intervene after KRA closed down Keroche.Keroche Breweries CEO Tabitha Karanja. Photo: Tabitha Karanja.
Source: Twitter

 

 

 

 

On Friday, March 4, 2022, Karanja said the company risks losing millions of money and sending over 250 direct employees home following the closure of the brewery on February 1, 2022

 

 

 

Karanja now wants Uhuru to request the authority to re-open the brewery to prevent further losses. She also wants a 12-month grace period on the taxes in arrears.

 

 

Millions in tax arrears

Karanja is involved in a bitter tax war of KSh 322 million with KRA, which led to the brewery’s closure on February 1, 2022.

 

At the time of closure, the brewery had two million litres of beer worth about KSh 512 Million in their tanks. Karanja said they now require KSh 30 million per month to maintain.

 

 

 

If nothing is done, Karanja said they would have to drain down all the beer and send their employees home.

“The recent closure by KRA has drained all our resources,” KBC quoted Karanja.

 

 

Loss of jobs

Apart from the loss of jobs, the uncertainty will lead to erosion of Investor confidence and killing of local industries.

 

 

 

In her petition, Karanja wants Uhuru to guarantee an operating environment that is free from any harassment.

 

 

Act of parliament

Karanja also wants MPs to develop laws that protect and cushion local businesses.

 

 

 

Further, Karanja said Treasury should have powers to offer waivers or moratoriums to local enterprises, especially during difficult times such as those occasioned by the pandemic.

 

 

 

Tax evasion

The media previously reported that Karanja had been embroiled in a long-running court case where the taxman accused her of tax evasion.

 

 

 

In 2019, Director of Public Prosecution Noordin Haji ordered her arrest, noting that the directors of Keroche Breweries had been under investigation in tax fraud on various products manufactured and sold by the company between January 2015 and June 2019.

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