Editor's Review

Keroche founder Tabitha Karanja has appealed to the government to allow them to resume operations.

At least 250 Keroche Breweries workers are staring at the possibility of losing their jobs over a tussle with the KRA.

This is after KRA shut down Keroche Breweries operations over Sh332 million tax arrears.

Addressing a press conference on Friday, Keroche founder Tabitha Karanja appealed to the government to allow them to resume operations.

{Keroche Breweries founder during the launch of a new product. Image: Courtesy}

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The tax arrears had accrued from February 2021 

"In December 2021, KRA closed the factory and further issued agency notices to 36 banks and we could not produce or access any finances to assist in settling the arrears,” Karanja said while in the company of her workers.

She revealed that the company while operating, was paying over Sh200 million in taxes adding that they are willing to negotiate and have the deal sealed amicably.

"Efforts to renegotiate a deal with the KRA Commissioner-Domestic Taxes Department and get revenue stamps had been unsuccessful."

She said the company is about to be sent into oblivion if it remains shut considering that Alcohol worth Sh512 million is still at the thanks in the company and might go into waste if nothing is done to salvage the situation.

She added that they will also be forced to lay off at least 250 employees who rely on the factory to eke a living.

“This has drained all our resources and unfortunately if nothing is done in the next seven days, we will be forced to drain all the beer and lay off over 250 direct employees,” she said.

According to Karanja, they are willing to remit their taxes and asked for 12 months window to do so so that they can be able to bounce back in their operations.

She appealed to the government to be lenient on them saying she is certain if they bounce back to life, the government will also benefit.

“Keroche is capable of remitting over Sh21 billion every year in taxes and a positive consideration of this appeal will be a win for both the company and KRA.”

She added: “The laws should mandate the CS Treasury to give waivers or moratoriums to investors during such difficult times brought about by a global pandemic.