Why it’s reopened
Keroche Breweries in Naivasha has reopened following the court order. On July 28, Justice Mshila issued an injunction directing KRA to reopen the factory immediately in order to avoid a contempt of court case that will be decided the following week. The manufacturer of alcoholic beverages was forced to close last month after it violated agreements to refund Sh957 million in tax arrears over a 24-month period and failed to pay a single cent in duty from beer sales since reopening in March.
The brewer claimed that during the closing time, the company lost a staggering sh350 million, but he was hopeful that things would turn around soon. The reopening was a welcome relief, according to Mr. Nicholas Kechei, the general manager of Keroche Breweries in charge of sales and distribution. They are now getting ready to bring back their 400 staff to start working from Monday. Kechei, however, stated that it will take them some time to regain their market niche and six months to fully recover, assuming there are no further disruptions or closures.
Why Keroche Breweries Limited was closed
The Kenya Revenue Authority (KRA) closed Keroche Breweries Limited for the second time on June 14 of this year after the two sides were unable to come to an agreement on how to resolve the Ksh. 322 million unpaid taxes that had forced the factory’s closure in December 2021. After a week of negotiations between the alcoholic beverage manufacturer and KRA, an agreement was reached and signed on March 14, 2022, resulting in the reopening of the brewery. However, on June 14, 2022, the taxman once more knocked on the door and shut the factory, sparking ongoing legal disputes.
Keroche Breweries Chief Executive Officer (CEO), Mrs. Tabitha Karanja, previously stated that the company’s problems with the tax office were caused by low business as a result of the Covid – 19 pandemic and the immediate aftershocks, which led to poor cash flows that limited its financial performance and, as a result, its failure to clear the dues. She added that the beer company was ready and willing to pay the debts if given enough time to conduct business.
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