By Cynthia Kenyani

Local brewer –Keroche is set to lay off 400 employees following the Kenya Revenue Authority’s closure of the firm over a tax dispute.

Keroche Breweries CEO Tabitha Karanja addressing the media

The tax collector accused the company of defaulting on an earlier agreed plan to repay tax arrears totalling Sh300 million.

Keroche – CEO Tabitha Karanja, alluded that the KRA’s move to shutdown Keroche breweries was politically motivated.

“I was thinking aloud on Sunday afternoon and pondering how I will relay the painful message to our employees on Monday that we will be laying them off as a result of KRA’s closure. I was also at pains as I looked at all the beer in the tanks that we shall be forced to drain to waste and wondered why and how the relevant ministries remain so indifferent to the dire consequences of the current closure of the company’s factory,” she said.

She turned her wrath to the Ministry of Interior and Coordination of the National Government, she said the Fred Matiang’i-led docket should be concerned that about 400 direct and thousands of other indirect jobs are on the brink of being lost.

Karanja now wants the Labour ministry to be concerned and interrogate the matter to safeguard the welfare of the employees.

“It is my humble request that all the relevant authorities be requested to rise to the occasion to amicably resolve the current issue and further protect and create a conducive and enabling environment even for other industries that may be suffering in silence,” she said.

The businesswoman further revealed how the company went from making close to Sh500 million per month before the Covid-19 pandemic to below Sh50 million.

“During the two years of Covid-19, the company ensured that the livelihood of its employees was sustained, which strained its resources. The post-Covid effects and the on/off closures of the company affected cash flow,” she said.

Karanja attributes her woes to the move to join politics through the Deputy President William Ruto-led UDA party.

In addition, the businesswoman also asked for more time to pay an Sh500 million tax negotiated in December 2021 and due six months after.

“It’s good to note that as KRA applies the Excise Duty Act to close down the company, the excise duty arrears amount to only about Sh195 million, of which we defaulted on only one instalment of Sh30 million for April 2022,” Karanja said.

She added that the Government needs to cushion Industries facing difficulties, especially local industries which have no parent companies in other jurisdictions to cushion them, like the multinationals.

“This is a humble request that all the relevant authorities be requested to rise to the occasion in order to amicably resolve the current issue and further protect and create a conducive and enabling environment even for other industries that may be suffering in silence,” she said.

The CEO called for a meeting with the Commissioner-General of KRA to articulate the firm’s predicaments as they seek a moratorium.