NAIROBI, Kenya, Jun 25 – Keroche Breweries will now deposit Sh100 million pending the conclusion of a Sh9.1 billion dispute with the taxman.
The brewer was directed to pay the amount after the Appeals Court considered Keroche’s inability to pay Sh500 million as initially ordered by Tax Appeals Tribunal.
In their decision on Thursday, Justices William Ouko, Daniel Musinga and Patrick Kiage gave the Naivasha-based firm 45 days to do so failure to which it’s bank accounts will be raided by the Kenya Revenue Authority (KRA).
Keroche moved to the Appeals Court arguing Justice David Majanja had failed to consider harsh economic times the firm was facing as a result of the COVID-19 pandemic.
The bench heard that complying with the March 16 directive would paralyse operations of the company.
The Appeals Court was urged to intervene as its appeal would be of no effect if the notices by KRA issued to Equity and Absa Banks are not lifted.
“It is evident that KRA has issued agency notices to the respondent bankers and unless the orders sought are granted operations of the firm will ground to a halt, ” the judges ruled.
KRA had urged the court to dismiss the application insisting that the order which Justice Majanja declined to vary was lenient.
Keroche was been given 30 days within which to file an appeal.
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