KRA Warns Banks Against Lending to Keroche Breweries

Kenya Revenue Authority (KRA) has warned 36 banks against lending to Keroche Breweries which has been struggling to stay operational over tax arrears.

Following these developments, up to 250 Keroche workers might lose their jobs as a stock worth 512 million shillings lie unsold. The company has been attracting a huge loss since its closure on February 1.

Keroche Breweries CEO Tabitha Karanja now wants the president to intervene on the matter where she said that the current financial crisis brought by the Covid-19 pandemic paralyzed the plant’s operations.

“Our humble plea to His Excellency the President of the Republic of Kenya is the assurance of a certain operating environment free from any harassment through closure on-premise of issues that can be amicably handled administratively,’’ Karanja said.

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Karanja added that her efforts to renegotiate with KRA Commissioner-Domestic Taxes Department did not succeed adding that the company will be forced to drain out all the beer if actions on the issue won’t be taken.

‘’This has drained all our resources and unfortunately, if nothing is done in the next seven days, we will be forced to drain out all the beer and send home over 250 direct employees,’’ she said.

Keroche Breweries CEO Tabitha Karanja said that the firm is ready to pay KRA required taxes if allowed to reopen adding that the firm had been closed over 322million tax arrears from February 2021.

‘’However, in December 2021, KRA closed the factory and issued further regulatory notices to 36 banks, and we were unable to provide or access finance to help settle the arrears,’’ she said.

Karanja also called on the parliament to draft legislation that would protect and strengthen local businesses in the future.

Article by Jane Muia