High Court orders Keroche to pay KRA Sh500m in 30 days

Keroche Breweries Limited chief executive Tabitha Muigai and the firm's board chairman Joseph Muigai Karanja before Milimani law courts over tax evasion charges. [File, Standard]

The High Court has ordered Keroche Breweries Limited to pay Kenya Revenue Authority (KRA) Sh500 million to get lift the urgency notice issued to the firm.

Justice David Majanja said if the brewer fails to pay the amount in 30 days, an order stopping KRA from recovering the amount, by attaching Keroche’s accounts, would lapse.

This is contrary to media reports that KRA had been barred from recovering Sh9.1 billion in taxes from the company.

On March 13, 2020, Keroche had gone to court under a certificate of urgency seeking orders to lift the notice served to its banks by KRA. The notice was to enable KRA recover Sh9.1 billion following the orders given by the Tax Appeal Tribunal (TAT) on March 9, 2020.

The court certified Keroche’s application as urgent and the brewery was issued with a temporary stay of the tribunals order pending the hearing and determination of the application for stay. The court further ordered that Keroche’s application for stay to be mentioned on March 16.

During the mention, KRA requested to be heard in opposition of the application for stay.

After the hearing, the court also ordered that there shall be a stay of further enforcement of any collection of taxes ensuing from the decision of TAT in Tax Appeal Tribunal.

The TAT was directed to furnish the typed copies of the judgement to all the parties within 48 hours and typed proceedings within seven (7) days from day of the court hearing.

The appellant was also ordered to file and serve its record of appeal within 30 days from the date of the court hearing.

The case will be mentioned on April 23.