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Keroche Resumes Operations After Court Ruling

Collins Ogutu | 3 months ago
Keroche Resumes Operations After Court Ruling
Keroche Resumes Operations After Court Ruling

The High Court on Thursday ordered the reopening of the Keroche Breweries limited on Friday July 29, according to a letter by KRA’s Commissioner for Legal Services and Board Co-ordination, Paul Matuku.

“Based on the directions of the Honourable Justice Abigail Mshila, the Kereche factory will be reopened tomorrow 29th July 2022 at 11.00am,” read part of the letter.

This comes on the backdrop of court battles that has been witnessed between the alcohol and beverage manufacturer and KRA over a tax dispute with the taxman claiming that nearly Ksh. 957 million was not submitted even after the two parties agreed to pay in installments over a 24-month period starting from January 2022.

A week ago KRA Director General James Mburu came under sharp criticism from  Keroche Breweries Limited demanding for his arrest over his failure to abide by a court order issued on July 14, 2022, requiring him to facilitate the reopening of the brewer’s factory in Naivasha.

"This honourable court be pleased to commit, James Githii Mburu, the contemnor herein to imprisonment for a period of six months for disobeying and being in contempt of orders of this Honourable court issued on 14th July 2022,” Brewer’s Chief Executive Officer Tabitha Karanja  said in her application, filed on on Friday, July 22.

KRA, however, has been protesting the High Court's decision as it sought to reverse the move.

According to the body, the  court rulings contradicted previous orders issued as well as  agreements between them on the payment of taxes running into billions of shillings.

In an earlier ruling, the court had directed the taxman to allow the Naivasha based firm  to resume operations by unsealing Keroche’s packaging line, and stores, and reactivating the Exercisable Goods Management System.

In May this year Keroche was shut by the taxman for the second time due to tax disputes after the factory was first closed down in February. This rendered over 400 workers jobless.

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