After failing to reach an agreement on how to settle its tax arrears, Keroche Breweries has been shut down once more.
Tabitha Karanja, the founder of Keroche Breweries, told the press on Tuesday, June 14 that the decision puts the future of the company’s 400 employees in jeopardy.
She further stated that if the closure is not halted, Ksh350 million worth of beer could be thrown away.
“Thousands of innocent hard working Kenyans are undergoing the indignity and injustice of unemployment, poverty and hunger,” Karanja stated.
According to reports, the company had defaulted on earlier agreement to gradually settle its outstanding tax arrears which it has denied.
Tabitha had asked for a chance to rebuild the business and save the jobs of her staff before settling the tax arrears.
“I specifically request once more to be given a moratorium on the enforcement action that shut down our operations, and on the unsustainable payment plan that we agreed to under unbearable pressure.
“I therefore also humbly request for further engagement to consider a way for the company to meet its due obligations without sacrificing it and the livelihoods of countless Kenyan households,” she added.
The repercussions come just months after the company agreed to a repayment plan, allowing it to restart operations following a suspension in March.
The agreement was reached and signed on March 14, 2022, following a week of negotiations with the alcoholic beverage maker. Keroche agreed to pay the tax authority Ksh957 million over the course of 24 months, beginning in January 2022.
Karanja had accused the government of issuing a warning to 36 banks not to lend to Keroche, a move she claimed contributed significantly to her company’s financial difficulties.
