Keroche Breweries and the Kenya Revenue Authority (KRA) have finally agreed on a tax payment plan after a protracted dispute.
The deal, inked on March 14, 2022, will see Keroche settle an undisputed amount of Ksh957 million over a period of twenty-four 24 months starting from January 2022.
The agreement sets the stage for the reopening of the Naivasha-based brewery production plant closed early last month over the tax row.
KRA has also committed to lifting notices issued to 36 banks blocking the lenders from advancing any loans to the brewer.
“The KRA seeks to encourage dialogue and amicable resolution of tax disputes,” KRA said in a statement to newsrooms on Wednesday.
The agreement brings to an end a back and forth witnessed between the parties in the recent past.
It comes a week after Keroche Chief Executive Officer Tabitha Karanja accused the taxman of frustrating local entrepreneurs.
In a lengthy statement, Karanja disclosed that KRA had frustrated bid for tax negotiations over Ksh322 million tax arrears.
The CEO said the plant has 2 Million litres of beer worth about Ksh512 Million in their tanks which now requires Ksh30 Million monthly to maintain.
While urging President Uhuru Kenyatta to intervene, Karanja said the company was considering draining all the beer and laying off over 250 direct employees.
“The recent closure by KRA has drained all our resources and unfortunately if nothing is done in the next seven days, we will be forced to drain down all the beer and lay down over 250 direct employees and thousands within our nationwide distribution network,” she said.
KRA later issued a statement accusing Karanja of dishonesty, further revealing that Keroche owed the taxman Ksh9 billion in taxes.