By an addendum agreement dated 14th March 2022, between Kenya Revenue Authority (KRA) and Keroche Breweries Limited, Keroche agreed to defray its tax liability of Ksh. 956,447, 847/- in a period of 24 months through a staggered payment plan.
However, Keroche reneged on the payment plan forcing KRA to take enforcement measures, which included sealing the factory. On 6th July 2022 Keroche sought intervention of the High Court and obtained orders on 14th July 2022 altering existing payment plan. The Court directed KRA to reopen the factory; and Keroche to pay Kshs. 8,000,000 per month within 7 days of reopening, and subsequently on the 30th of every month. The Court further directed Keroche to ensure it pays current taxes without fail.
Following the Orders of the Court, Keroche was reopened on 29th July 2022. However, in complete disregard of the Court Order of 14th July 2022 Keroche has not paid any taxes as directed by the Court.
Consequently, on 31st August 2022, KRA moved to the High Court seeking orders of the immediate arrest of Tabitha Mukami Muigai and Joseph Muigai Karanja, the directors of Keroche Breweries Limited. KRA seeks to have the two directors presented to Court, adjudged guilty for contempt of Court, be imprisoned and fined for failing to pay due taxes as ordered by the Court, and for misusing and abusing the court process.
The High Court has certified the contempt of court application by KRA as urgent and directed Keroche to file a reply immediately. The case will be heard on 6th September 2022.
Commissioner - Legal Services & Board Coordination.