Raila defends Keroche Breweries in tax battle with KRA

Raila defends Keroche Breweries in tax battle with KRA

Raila Odinga

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Azimio la Umoja One Kenya coalition party presidential candidate Raila Odinga has come to the defence of Keroche Breweries Limited after the Kenya Revenue Authority (KRA) shut down the beer manufacturer over default in payment of tax arrears.

Speaking on Friday in Thika, Odinga urged the government to avoid taking punitive measures that cripple key industry players in the name of reclaiming taxes.

Odinga said the State should regulate taxes and accord investors good tax payment laws that allow them to be compliant.

“It is not right to become punitive in terms of taxes. If taxes are too high, there is a tendency to evade them, but if they are low and manageable, people will pay. Don’t close a business because the owner has defaulted in paying taxes," Odinga stated.

“That is why am telling them, let Keroche go don’t kill Keroche. If she cannot pay today, let her pay tomorrow. Spread out the payment. She is a Kenyan... Where can she run away to?"

The Naivasha-based Company which was recently shut by the Kenya Revenue Authority (KRA) over unsettled taxes, Odinga major revenue generator and source of employment

He went on to say that the move by the State to shut the company not only disables the company but also affects Kenyans. “Don’t do it because if you close a business, you are not only killing the investor but you are also killing the employees,” he noted.

At the same time, while drumming up support for the Azimio faction, Odinga intimated that his administration would protect the private business sector and come up with good tax laws that would help investors and business people to be tax compliant.

“The private sector is an engine for economic growth. The government needs to create an enabling environment for the sector to thrive by removing bureaucratic red tape so that the private sector can move and create wealth,” he said.

Addressing the media on Tuesday, Keroche CEO Tabitha Karanja said the company was shut down on May 15, 2022, after defaulting on an earlier agreed plan to repay tax arrears totalling Ksh.30 million.

Karanja however maintains that KRA's move to shutdown Keroche breweries is politically motivated, adding that KRA has gone ahead to issue agency notices to several banks against lending the brewer, fully paralyzing the operations of the company.

"The KRA measures of issuing the agency notices to all the banks in Kenya, have induced a harsh investment climate. Some banks with whom we were arranging financing are finding it difficult because frequent closures are raising risk levels," said Karanja.

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