Keroche CEO Tabitha Karanja's message to ex-KRA boss Githii Mburu after exit

Keroche Breweries CEO Tabitha Karanja has penned a message to the former KRA boss Githii Mburu, following his exit.

In the statement posted on her official Twitter page, Karanja shared what she termed her favourite Bible verse with Mburu.

“As you exit the stage to pave way for the new leadership at Kenya Revenue Authority, I wish to share with you my favourite bible verse in the book of Mathew 7:12 “Do to others whatever you would like them to do to you”,” she said.

The Nakuru Senator added:

“To my friend CG - Githii Mburu I wish you all the best in your future endeavours.”

The two are not strangers.

The Senator and Mburu were embroiled in a protracted court case after the KRA pressed tax evasion charges against her in 2020.

The three-year-old case has been pending at Milimani Chief Magistrate’s court since August 23, 2020.

The taxman has shut down the factory multiple times since 2021.

Between December 7, 2021, and January 28, 2022, KRA shut down operations at the factory several times and issued agency notices to banks.

On March 2022, the factory and the tax agency, brokered a deal temporarily settling disputes that had been going on in the previous years.

The agency agreed to have the factory resume its operations after they agreed that Keroche was going to settle its close Sh957 billion tax liability in two years.

“The payment plan which is contained in an addendum agreement to the two Alternative Dispute Resolution (ADR) Agreements signed between the two parties in 2021 was arrived at and signed on March 14, 2022, after week-long negotiations,” KRA said.

In 2022, the Authority shut down the company six times, for defaulting on an earlier agreed plan to repay tax arrears totalling Sh300m.

Speaking on July 21, Karanja said the only way the company was going to pay the taxes accrued, is if it is operational.

“We reiterate our commitment to pay all the taxes due and owing to KRA and we respectfully urge them to allow us to do the business that would unfailingly generate the money to pay off the owed taxes, the current taxes and the future taxes,” she said then.

On July 29, KRA opened Keroche following a court order issued on July 14, after having shut it down for the sixth time in June 2022.

In September, the taxman accused the brewery of failing to make the required payment, agreed upon prior to reopening in July.

According to the KRA, Keroche was to pay Sh8 million on Aug 6, Sh 8 million on Aug 30 and taxes worth Sh14.2 million, which were yet to be paid by the time.

“Keroche Breweries Limited has been adamant in disregarding the court order of July 14,” KRA’s application to the court read.

KRA further said despite issuing letters demanding the payment of the taxes from Keroche on July 21, August 3, August 15, and August 24, the brewer had failed to comply with the order and pay any taxes as ordered or when they fall due.

"Keroche Breweries Limited has now proceeded to decline to comply with their obligations under tax law and due dates to accounting for tax being the end of the month,‘’ KRA said in a court petition.

Following the petition, Keroche was summoned to physically appear in court on October 27, 2022.

Come 2023, the case is still ongoing.

On February 7, the court ordered the DPP to supply copies of witness documents in the Sh 14.5 billion tax evasion case against Keroche.

Karanja has since denied ten counts levelled against her by the State.

The case will be mentioned on March 13, for purpose of confirming whether the prosecution has supplied all documents to the defence.

I weep for my country. Wish people knew the mess we are in.

In as much as the guy was petty,so Tabitha hakutaka kuitishwa Tax?

Going from the stories in this cesspit…peeps have their minds set on pussy and alcohol…same as mtaani…a little hedonism to avoid facing the truth that Kenya has gone to the dogs

Alipe tax na awache UPUSS!!!

Jaruos and their dooms day propaganda hamchoki

Lakini huyo lanye halipangi ushuru.

Sasa wewe na hauna pussee unataka aje?

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Ruto has never concealed his displeasure with KRA’s previous aggressive clampdown on the rich in an effort to recover unpaid taxes and raise national revenues. During his campaigns for the August 9 election, Dr Ruto claimed that his close allies were targeted for political persecution or were being intimidated so that they could abandon him.

Sources close to Mr Mburu reckon he opted to throw in the towel rather than wait to be pushed out by a board that wanted operations of the KRA to take a different turn.

He was also uncomfortable with the style of work of the new chairman Anthony Nganga Mwaura, an ally of the President who had taken up operational roles at the KRA, earning him the tag ‘Executive Chairman’ in Kenya’s business circles.

Mr Mwaura’s mode of operation was different from that of his predecessor, Francis Muthaura, who preferred to remain behind the scenes.

The executives replaced are Lilian Nyawanda (Commissioner, of Customs and Border Control), Terra Saidimu (Commissioner, of Intelligence & Strategic Operations) and David Kinuu (Commissioner, of Corporate Support Services). David Mwangi, David Yego and Nancy Ngetich have taken up their respective roles in an acting capacity.

The Commissioner of Domestic Taxes Rispah Simiyu has replaced Mr Mburu in an acting capacity.

“The regime and the board were unfriendly. With changes in government, he actually wanted to leave. It has actually taken longer than was expected,” said a source close to Mr Mburu who sought anonymity.

Mr Mwaura was appointed chairman in November in changes that also saw the appointment of five new directors on January 12, leaving only State representatives.

Mr Mwaura is a businessman whose past is controversial and doesn’t boast the public service credentials of his predecessors.

He came into the limelight in 2020 when his companies, Hardi Enterprises and Toddy Civil Engineering Company, were implicated in a City Hall scandal for allegedly receiving irregular payments amounting to Sh102 million.

Mr Mburu got a fresh five-year term in June after serving his initial three-year contract that started on July 1, 2019.

His tenure was marked by aggressive pursuit of prominent people the KRA believed to be tax cheats in what ushered in the boldest crackdown on high-net-worth persons.

The taxman hinged this aggressive pursuit of tax cheats on the Tax Procedures Act, which empowers the authority to seek taxes directly from third parties like banks, employers and suppliers.

The distress order allows the KRA to forcibly occupy a tax cheat’s house or business premises and failure to settle the demanded taxes can lead to an auction of the business premise or goods in the business.

This is the law the KRA used in 2019 to close the Thika-based Africa Spirits Limited (ASL) over a Sh17 billion tax evasion clai

https://nation.africa/kenya/business/why-mburu-cut-short-five-year-kra-term-after-8-months--4135766

957 billion? This is almost a trillion. In perspective 957 billion is equal to $7.6 billion with the current exchange rate.

It’s open season for thieves in Kenya. Taxes zitalipwa na mama mbogas and boda bodas. It’s the turn of the shareholders to eat.