Court Orders Arrest Of Nakuru Senator Tabitha Karanja in Sh14 Billion Tax Case

A Nairobi court on Wednesday ordered the arrest of Nakuru Senator Tabitha Karanja after she failed to appear for the hearing of a case where she is charged with tax-related issues.

The case was set for hearing on Wednesday but failed to proceed because she was not present.

She had on April 13 pleaded not guilty to fresh tax evasion charges after the prosecution amended the charge sheet in the Sh14.5 billion tax evasion case.

Her lawyer told the court then that they wanted the matter resolved out of court.

However, a KRA officer Irene Muthee told the court that there was no agreement to settle the matter out of court because Keroche would be required to notify the commissioner in writing under the Tax Procedure Act.

Read: Tabitha Karanja Seeks Out of Court Settlement in Sh14.5 Billion Tax Evasion Case

The court gave Keroche 45 days to begin the out-of-court settlement process, failure to which the case would proceed to trial.

KRA sued Keroche Breweries for contempt of court in late 2022. This was after Keroche defaulted on a new payment plan ordered by the same court which required the brewer to make monthly payments on tax arrears and honor current taxes.

The taxman said Keroche did not honor payments amounting to Sh30.3 million including the payment of Sh16 million in two equal tranches in August. Keroche was further in default of Sh14.3 billion in current taxes.

The senator had in June this year announced she had stepped down as Keroche CEO during the commemoration of the company’s 25th anniversary since inception.

“Having navigated the journey as the captain for 25 years, the time has come for me, Tabitha Karanja, to pass the baton to a new generation of business leaders. With immense pride, I hereby announce my decision to step down as the CEO of Keroche Breweries, entrusting the leadership to a deserving successor,” she said then.