Kenya: Keroche Urges Law Review to Provide Incentives to Struggling Local Businesses

Nairobi — Keroche Breweries has appealed to the government through the Parliament to consider reviewing some of the existing laws and enactment of new ones to give incentives and facilitate local businesses, especially in times of economic hardships.

Keroche’s Chief Executive Officer Tabitha Karanja, in a statement issued following a meeting with the Kenya Revenue Authority (KRA) to discuss the taxes in arrears, said that more measures such as granting moratoriums, extended payment periods, and waivers can go a long way in giving new lease of life to local entrepreneurs.

The meeting saw the two firms settle on an agreement that will see Keroche settle an undisputed tax amount of Sh957 million over a period of two years.

“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, and waivers can go a long way in giving new lease of life to local entrepreneurs and give them a competitive edge against large multinationals,”

The agreement was reached days after the Naivasha-based local brewery appealed to the KRA Commissioner General, James Gathii, to re-open the plant to prevent huge losses and to grant ut an 18-month grace period to sort the taxes in arrears.

The joint addendum spells out that the factory was to be re-opened on March 15 upon payment of the 1st installment as per the payment plan which has been done.

Other outcomes of the understanding between the two institutions are that all taxes not in dispute have been agreed with a payment plan of 24 months, all the Agency Notices in the 36 Banks are to be immediately lifted by KRA and any tax disputes will 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,” stated Keroche.