Keroche Breweries has officially reopened after resolving a long-standing Sh14.1 billion tax dispute with the Kenya Revenue Authority (KRA).
The protracted standoff, which led to multiple closures of the brewery, has been settled, allowing the company to resume operations and focus on recovery.
Leadership Changes and Vision for Revival
Speaking at the reopening ceremony, founding CEO and Nakuru Senator Tabitha Karanja shared her optimism about the company’s future.
She announced that her son, Edward Muigai, will serve as the acting CEO, tasked with spearheading the brewery’s revival efforts.
Karanja also highlighted plans to recruit up to 1,000 employees, emphasizing the role of local industries in creating jobs and fostering economic growth.
“The government must promote local industries that create employment for Kenyans,” she stated.
Challenges and Recovery Journey
The reopening marks the end of a tumultuous period for Keroche, which faced significant financial challenges, including liquidation threats and tax-related court cases.
Towards the end of 2024, KRA dropped its case against the brewery in favor of an out-of-court settlement. This decision has provided the company with an opportunity to stabilize and rebuild its operations.
Senator Karanja described the cases against the company as politically motivated, making it difficult to engage stakeholders in its recovery plan.
“When the company found it hard to sustain its workforce, it declared redundancies and left about 30 people,” she noted.
She also expressed gratitude to the small team that kept the company running during its most challenging times.
Historical Background and Challenges
Keroche Breweries’ journey began in 1997 when Tabitha Karanja and her husband Joseph Karanja founded the company with an initial capital of Sh500,000, sourced from their hardware business.
Over the years, Keroche grew into a formidable player in Kenya’s beverage industry, carving out a niche despite stiff competition from established multinational companies.
However, the company’s path has been fraught with challenges. From battling entrenched market players to facing regulatory hurdles, Keroche’s resilience has been tested time and again.
The recent tax dispute with KRA was one of the most significant hurdles, threatening the company’s survival and leading to temporary closures and job losses.
Despite these difficulties, Keroche has consistently demonstrated its commitment to innovation and growth. The company’s ability to weather storms and bounce back underscores its importance to Kenya’s economy and its potential for future success.
Future Prospects
With the tax dispute now behind them, Keroche is poised to regain its footing and continue its contribution to Kenya’s economy.
company’s focus on expanding its workforce and revitalizing its operations underscores its commitment to overcoming past challenges and achieving sustainable growth.
.){kind=link}