Keroche Breweries CEO Tabitha Karanja has warned that the company will be forced to lay off at least 250 employees, following Kenya Revenue Authority’s (KRA) move to shut down its Naivasha factory.
KRA has also issued a notice to 36 banks against lending to the firm, following a Ksh9.1 billion tax row that has seen the firm default on payments.
“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,” Ms Karanja said.
According to Karanja, the premises are holding over two million litres of beer in the storage tanks worth Ksh512 million which needs Ksh30 million monthly to maintain.
Read: Stanbic Bank On Bullish Mode As It Records 39PC Profit Jump
She is asking KRA for a 12-month grace period to resume paying the tax arrears.
“At this point, they refused to accept further negotiations and the office of the Commissioner-Domestic Taxes Department, advised us that their hands were tied and we should seek support from the office of the Commissioner-General,” Ms Karanja said.
Keroche, which has not paid workers for months now, is blaming its woes to Covid-19 pandemic which has eaten into its revenues.
“The effects of the pandemic were not only on loss of lives but serious erosion of the business environment leading to closure of businesses, loss of employment and the attendant income among other effects. As we got into 2022, the cases of Covid 19 started going down but the post Covid 19 effects are being felt harder. The effects are being aggravated by the current political climate as we get closer to the August 2022 General Elections.,” added Karanja.
“The government should re-evaluate the post Covid effects and the impact they have on the different sectors of the economy in order to formulate policy measures that will rejuvenate the players and by extension the economy. Without re-inventing the wheel, the government can borrow a leaf from the west where businesses have been extended grants, tax breaks, moratoriums and low interest loans.”
Read Next: KRA Customs Officers Intercept Ksh238 Million At JKIA
