Keroche Breweries factory reopens after Kshs. 957M tax deal with KRA

Kenya Revenue Authority (KRA) and Keroche Breweries Limited have agreed on a repayment plan that will see the brewer clear tax arrears amounting to Kshs. 957 million within two years.

This follows an agreement the two signed at the Alternative Dispute Resolution Agreements last year and which was finalized on March 14, 2021.

The Naivasha-based brewer will also reopen its factory which has remained closed since January 31, 2022, over the failure to remit taxes amounting to Kshs. 351 million for the period between February last year and 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 Kshs. 957,000, 000 over a period of twenty-four months starting from January 2022,” said Paul Mutuku, KRA Commissioner for Legal Services.

KBL had warned that it could lose millions of shillings from 2 million litres of beer worth about Kshs. 512 million which were in storage and incurring a monthly fixed maintenance cost of about Kshs. 30 million.

The taxman has also agreed to lift agency notices issued to thirty 36 Banks allowing the brewer to access its funds.

According to Mutuku, the agreement which flows from earlier Alternative Dispute Resolution processes will see the rest of the taxes owed by the brewer dealt with as was agreed between the two parties in the signed ADR.

KRA is currently demanding taxes amounting to Kshs. 22 billion from a 15-year tax row that has threatened the collapse of the privately-owned brewer.