KRA rejects Sh8m High Court deal in Keroche tussle

By , July 20, 2022

Kenya Revenue Authority (KRA) yesterday moved to the High Court to block a recent directive that gave the troubled Naivasha-based brewer Keroche a lifeline to resume operations. 

Last Friday, the High Court ordered the brewer to pay Sh8 million in taxes every month until the next hearing, of a case pitting it against the taxman.

The taxman was to allow Keroche resume operations as the two parties crafted a plan on how the Sh957 million tax arrears will be paid.

Going against earlier orders

However, in the latest move by KRA, the taxman argues that the directive had gone against an earlier agreement reached between the parties.

“It is the Authority’s view that the case filed in Court by Keroche and the orders sought go contrary to previous orders issued by the same Court and the consent agreements arrived at and signed by the two parties,” KRA said in a statement.

The revenue collector moved to the High Court to vacate and set aside the order issued on 15th July 2022 in HCCC NO. E250 OF 2022 Keroche Breweries Limited vs Kenya Revenue Authority, which directed the re-opening of Keroche.

KRA shut Keroche Breweries on May 15 after the Naivasha based brewer failed to honour a repayment plan that would have seen it settle Sh957 million shillings in 24 months. In its defence, Keroche said it was unable to honour the payment schedule given the tough operating environment.

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