High Court Orders KRA to Reopen Keroche Breweries

The High Court has ordered Kenya Revenue Authority (KRA) to immediately reopen Keroche Breweries Ltd pending the hearing and determination of a tax dispute between the two parties.

The order was issued on Friday after the two parties returned to court after the Naivasha-based beer manufacturer defaulted on an earlier agreement to repay determined tax arrears amounting to Sh957 million across 24 months. This prompted the tax authority to shut down Keroche Breweries on May 15th.

In its defense, Keroche says it was unable to honor the payment plan, citing a tough operating environment and the short-run to the payment of the first installment covering the tax arrears.

The court has sanctioned a new repayment schedule that requires Keroche to pay an initial Sh8 million as the first installment on the tax arrears and then pay a similar amount on the 30th day of each month until the next hearing date.

The latest reopening order requires KRA to unseal the brewer’s repackaging line and stores and reactivate the Excisable Goods Management System (EGMS) at the plant.

The next hearing date for the suit will be on September 22nd, 2022.

Early this month, Keroche sent home 370 workers on indefinite unpaid leave after operational funds dried up following the taxman’s closure of the company on May 15th. Keroche CEO Tabitha Karanja said the company was unable to shoulder a workers' monthly bill of Sh20 million.