Keroche Breweries is set to re-open after signing an agreement with Kenya Revenue Authority (KRA) to pay Sh957 million tax arrears in two years.
The agreement with the taxman was reached on Wednesday, days after its Managing Director Tabitha Karanja went public on the company’s tribulations.
The payment will be made as pending taxes paving way for the reopening of the Naivasha-based brewer which had decried that it would risk laying off 250 employees and losing 2 million liters of beer in the tanks under fermentation worth Shs512 million should it remain shut.
A statement shared by KRA indicated that the two firms settled on an agreement that will see Keroche settle an undisputed tax amount of Sh957 million over a period of two years.
Full Statement:
We are glad to announce that KRA accorded us an opportunity to have a meeting in which we discussed the tax in arrears issues. The meeting was cordial and at the end we came up with a joint Addendum spelling out the outcomes as follow;
1) All taxes not in dispute were agreed with a payment plan of 24 months.
2) The factory was to be re-opened on 15 March 2022 upon payment of the 1st instalment as
per the payment plan.
3) All the Agency Notices in the 36 Banks were to be immediately lifted by KRA.
4) Any tax disputes to be dealt with in accordance with the laid down statutes and procedures.
As a law-abiding entity, the company gives a renewed commitment to ensure that they meet their statutory obligations as they fall due. This will ensure that we make our fair contribution to the Exchequer for building our Kenyan Economy.
We would like to make an appeal to our National Government through the 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. We note with appreciation the short-term tax incentives that were given in 2020 when COVID-19 Pandemic hit the country. However, more measures such as granting moratoriums, extended payment periods, waivers, etc can go a long way in giving new lease of life to local entrepreneurs and give them a competitive edge against large Multinationals.
Finally, we take this opportunity to extend our gratitude to the people of Kenya for your patience as you waited for the re-opening of the company. As we reopen, your patronage and support are key so that we can continue creating more jobs for our fellow Kenyans.
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