Reprieve for Keroche as High Court Bars KRA from Accounts

Keroche Breweries Limited on Friday got a reprieve after the High Court blocked The Kenya Revenue Authority (KRA) from recovering Ksh9 billion from the Breweries accounts.

The move by the taxman followed  the ruling by the Tax Appeals Tribunal on Thursday which dismissed Keroche’s appeals filed to challenge levying of Vienna Ice Vodka

High Court Judge David Majanja’s came to the rescue of the troubled brewer, giving Keroche temporary reprieve as it ponders on the next move.

On Friday, KRA moved to freeze Keroche’s Equity Bank and Absa accounts to put pressure on the brewer to settle the Sh9.1 billion in full.  KRA deputy commissioner of the Domestic Taxes Department, Mr. Daniel Kagira wrote to Equity Bank ordering the bank to pay KRA Ksh9,116,835,985 on behalf of Keroche until the amount is fully recovered.

However, Keroche Breweries through the Ceo Mrs. Tabitha Karanja termed the move as unfortunate and ill-advised. “Today morning, we woke up to an agency notice issued by KRA directed to our banks to collect Ksh9 billion. This means Keroche Breweries cannot withdraw any money or transact any business from their accounts until KRA collects the alleged Ksh9 billion, ” said Mrs. Karanja.

In addition, Mrs. Karanja accused KRA of misleading the public on the tax evasion cases, arguing that   KRA action was illegal, as the ruling issued by the tribunal is not final. She questioned the speed at which the Revenue Authority was moving to collect the tax, noting that the brewery had not exhausted legal avenues available.

“This is absolute misuse of power that we the people have bestowed on KRA. They have lied to the public that we owe them Ksh9 billion. They know very well; the legal process in the matter has just begun. Immediately the Tax Appeals Tribunal made a decision, we have 30 days to appeal. The Tribunal made its decision 2 days ago, Monday 9th March 2020, ” the statement reads.

The proacted battle between KRA and Keroche has been going on for almost 15 years. KRA had in 2006 demanded sh 1. 1 billion backdated for five years. This led to rigorous court battles to date. The demands by KRA has since grown to Sh9.1 billion

KRA and Keroche are expected to appear before Justice David Majanja Monday, March 16, 2020, for further directions on how the case will proceed.