DPP Orders Arrest of Keroche Directors Tabitha & Joseph Karanja

  • DPP Noordin Haji has ordered the arrest of Keroche Breweries owners Tabitha and Joseph Karanja over claims of tax evasion.

    The inquiry relates to the alleged failure to pay tax amounting to Ksh14.4 Billion on various products manufactured and sold by Keroche Breweries Limited during the period of January 2015 to June 2019.

    "The audit by the Kenya Revenue Authority (KRA) established that Keroche Breweries Limited had evaded the payment of tax totalling 14,451,836,375," read a part of the statement by the DPP.

    Keroche Breweries Owner Tabitha Karanja

    Haji noted that the company avoided paying, Value Added Tax (VAT) on products including; Stamps Allocated (Ksh329 million), Crescent Vodka  (Ksh135 million), Vienna Ice-Quantity Variance  (Ksh1.7Billion) Vienna Ice-Rate Variance (Ksh9 billion), and summit beers at Ksh658 million, coming to a total of Ksh12 billion.

    In terms of Excise duty, Keroche Breweries is alleged to owe the taxman Ksh41 million in stamps, Ksh55 million on Crescent Vodka, Ksh 233 million on Vienna Ice with quantity variance and Ksh1.5 billion with rate variance.

    Summit beers are also short on monies worth Ksh250 Million.

    This amounts to a total of Ksh14.4 billion.

    The arrest order comes in the backdrop of the recent arraignment of businessman Humphrey Kariuki and members of his board of directors over claims of tax evasion.

    Businessman Humphrey Kariuki and members of his company's board of directors in court.