The Kenya Revenue Authority (KRA) and Keroche Breweries Limited have reached an agreement on the payment of tax arrears by the brewer.
In a statement issued on Wednesday, March 16, the taxman announced that they had agreed on a payment plan on taxes owed, and not in dispute from Keroche.
According to the KRA, the payment plan was arrived at and signed on March 14, 2022, after week-long negotiations between the taxman and Keroche.
Keroche agreed to pay Ksh957 million to the tax authority in a period of 24 months starting from January 2022.
"The payment plan, which is contained in an addendum agreement to the two Alternative Dispute Resolution Agreements signed between the two parties in 2021 was arrived at and signed on 14th March 2022 after week-long negotiations.
"The addendum agreement which sets the stage for the reopening for production of the Naivasha based brewery will see Keroche settle an undisputed tax amount of Ksh957,000,000.00 over a period of twenty-four ( 24 ) months starting from January 2022," the statement read in part.
Further, KRA agreed to lift agency notices issued to the brewer's banks adding that it was keen on resolving any disputes with Kenyan companies. The taxman had cautioned 36 local banks against lending the company founded by Tabitha Karanja.
"The signed addendum agreement will also see the KRA lift agency notices issued to 36 Banks. The KRA seeks to encourage dialogue and amicable resolution of tax disputes," the statement read in part.
Karanja had accused the government of issuing an advisory to 36 banks not to lend Keroche, a move she noted had greatly contributed to her company's financial woes.
Speaking to the press in Nakuru, last week, Tabitha stated that 250 workers will be affected by the mass sacking that will take place in a week's time. She explained that Keroche Breweries was struggling since it has been unable to sell alcoholic drinks in its reserves worth over Ksh512 million.
She explained that the legal battle with the taxman over Ksh322 million taxes had put the company in the middle of a financial crisis, with Tabitha arguing that the debts were backdated to February 2021, a move she termed as illegal.
Karanja petitioned President Uhuru Kenyatta to intervene, noting that livelihoods would be lost if no action is taken to save the brewer.
