Keroche Breweries has been handed a lifeline in its tax row with the Kenya Revenue Authority (KRA) after striking a deal with the taxman.
In a press statement on Wednesday, the revenue authority said that it had agreed with the Naivasha-based firm on a payment plan.
The agreement was signed on March 14 after a week-long negotiations with Keroche required to settle payments starting January 2022.
"The addendum agreement which sets the stage for the reopening for production of the Naivasha-based brewery will see Keroche settle an undisputed tax amount of Sh957,000,000 over a period of twenty-four (24) months starting from January 2022," read part of KRA’s statement.
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In the statement, the KRA further said it would lift the agency notices that were issued to 36 banks.
Before the agreement on Wednesday, Keroche had requested for a grace period of 18 months to clear its tax arrears.
The firm cited financial distress following its closure as it was on the verge of disposing liquor worth Sh512 million.
“The recent closure by KRA has drained all our resources and unfortunately if nothing is done in the next seven days, we will be forced to drain down all the beer and lay down over 250 direct employees and thousands within our nationwide distribution network,” Keroche CEO Tabitha Karanja stated earlier.
KRA earlier revealed that the Naivasha-based brewery owed it up to Sh22 billion in unpaid taxes.
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