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Naivasha’s Keroche Breweries has sent at least 400 workers on unpaid leave as the tax row with Kenya Revenue Authority (KRA) escalates. 

Company Chief Executive Officer Tabitha Karanja said the move was necessary due to the financial constraints occasioned by the ongoing tax dispute. 

Karanja, however, disclosed the company had retained a small number of workers who will be responsible for maintenance. 

The CEO was quick to clarify that the workers had not been sacked but sent home on unpaid leave as the company tried to resolve the current impasse. 

“We have decided to send our workers home on unpaid leave as we seek the way forward over the current tax impasse,” she said. 

According to Karanja, the company was contemplating moving to court to challenge the decision by KRA to close the brewery despite their intentions for engagement. 

She said that the company was incurring huge electricity bills due to the amount of liquor in the tanks that required to be refrigerated. 

“We shall be heading to court to challenge the closure by KRA as we think that we have been unfairly targeted and in the process 10s of our workers are on the verge of losing jobs,” she said. 

She said that the company had requested for a six months moratorium before commencing payments because of post-Covid-19 effects which had affected its finances. 

Last month, KRA closed down the brewery after defaulting on an earlier agreed plan to repay tax arrears totaling to Sh300 million.