Kenyan brewer Keroche agrees to pay KRA $8.3m to end tax row
Wednesday March 16 2022
Keroche Breweries chief executive officer Tabitha Karanja speaks to the media at her Nairobi office on March 9, 2022. PHOTO | DIANA NGILA | NMG
Kenya’s second largest brewer, Keroche Breweries limited, has reached an agreement with the Kenya Revenue Authority to pay $8.3 million of its tax arrears, ending a tax row that resulted in the company’s shutdown two weeks ago.
The taxman announced on Wednesday that it had signed an additional agreement with the Naivasha-based manufacturer, requiring the company to pay the undisputed tax amount within a period of two years, beginning January 2022.
This sets the stage for the reopening of production at the company, as Keroche will stick to earlier agreed plans on settling the rest of its owed taxes.
“The signed addendum agreement will also see the KRA lift agency notices issued to thirty-six (36) Banks,” KRA said in a statement.
The authority imposed a freeze, barring 36 commercial banks in Kenya from lending or engaging in any dealings with the brewer, famous for its Summit Lager and Summit Malt brands that are sold mainly in Kenya.
KRA had accused the NSE-listed company of defaulting on payment of corporate tax, excise duty, value-added tax, and penalties that had all accrued to $199.38 million.
Keroche had asked the taxman to allow it to resume operations as it works on a repayment plan, saying it had over two million litres of liquor in its storage worth about KSh512 million ($4.47 million), requiring KSh30 million ($262,000) monthly maintenance cost.