KRA , Keroche Agree on a 24 Month Payment Plan on Tax Dispute.

 KRA , Keroche Agree on a 24 Month Payment Plan on Tax Dispute.

Image /Jumuiya

The Kenya Revenue Authority and Keroche Breweries Limited have reached an agreement for a payment plan on taxes owed to the tax collector by the brewer.

This will see Keroche settle an undisputed amount of Ksh. 957,000,000 over a period of 24 months, starting January 2022. 

In a statement, the tax agency said that the payment plan which is contained in an addendum agreement, will set the stage for the re-opening of production for the Naivasha based brewery 

The Kenya Revenue Authority also added that the plan which is contained in an addendum agreement to the two (2) Alternative Dispute Resolution Agreements signed between the two (2) parties in 2021 was arrived at and signed on 14th March, 2022 after week-long negotiations.

The agreement will see Keroche settle an undisputed amount of Ksh. 957,000,000 over 24 months, starting January 2022. 

An addendum is an attachment to a contract that modifies the terms and conditions of the original contract. Addendums are mainly used to efficiently update the terms or conditions of many types of contracts.

A statement from the Keroche Breweries Limited CEO Ms. Tabitha Karanja stated that the factory was to be re-opened on 15th March upon payment of the first installment, and all the agency notices to the 36 banks were to be lifted with immediately effect by the Kenya Revenue Authority.

Ms. Karanja in the statement made an appeal to the national government through Parliament to consider review of some of the existing laws and enactment of new ones to give incentives and facilitate local businesses especially in times of economic hardships.

A statement from the Keroche Breweries Limited CEO Ms. Tabitha Karanja stated that the factory was to be re-opened on 15th March upon payment of the first installment, and all the agency notices to the 36 banks were to be lifted with immediately effect by the Kenya Revenue Authority.

The Kenya Revenue Authority shut down the brewery last month over its long battle with the taxman, with KRA demanding Ksh.322 Million in taxes from the brewer, after Keroche defaulted on an earlier agreed tax repayment plan.

CEO and owner of Keroche Breweries Limited, Ms Tabitha Karanja, released a statement lamenting that the closure of the brewery plant by the tax agency has drained the company’s resources, adding that over 250 direct employees will have to be laid off. 

Ms. Karanja lamented that KRA had ordered 36 banks to block the company’s financing and not give them any loans, explaining that this made their situation worse.

Ms. Karanja appealed to the President to intervene as her efforts to get an audience with KRA commissioner general Githii Mburu were in vain.

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