Keroche is insolvent, unable to pay his salaries and in default on taxes

As its financial crisis worsens, Keroche Breweries is grabbing at straws. The local brewery has over two months of salary arrears and has also defaulted in a tax repayment plan with Kenya Revenue Authority.

Keroche Breweries 1

According to a local newspaper, Keroche closed down in December 2021. After an agreement between the taxman and the management, however, the facility was reopened during Christmas season.

Tabitha Karanja, chief executive officer of Keroche, stated that the salary delay was due to the money problems facing the brewer. However, she denied the claims of some employees that the salary delays had been running for over six months.

Ms. Karanja stated that the pandemic had caused severe damage to her business, leading to current difficulties. To be honest, the ripple effect caused by the disease had a significant impact on our tax obligations. This led to arrears of Sh. She said that Sh. 270 million was the amount. “Before the pandemic we were able pay the Sh. 200 million tax (tax), but it was not easy to pay the remaining amount.

Ms. Karanja also disclosed that Keroche was closed for two weeks in December.

She stated that she hoped to continue honoring tax obligations as the world is improving. “We have weathered this storm and we will continue to pay our taxes with the help of the KRA.

Keroche is involved in a long-running battle with KRA over Sh. 9.1 billion tax dispute. The courts ruled in favor of Keroche and ordered him to pay KRA Sh. As the hearing progressed, 500 million was awarded to Keroche. Keroche, however, protested it couldn’t raise the amount and requested an out-of-court settlement. KRA and Keroche entered into an alternative dispute settlement to resolve the dispute.

The problems facing the brewer are only months after Ms. Karanja declared that she would be resigning her position to run for the Nakuru senatorial chair in the August General Elections.

Get latest news from African Startup ecosystem

Latest stories

You might also like...