“Today marks a significant milestone as I make an important announcement. 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," Mrs Karanja said in her exit speech.
"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 leaves behind a company that is battling a liquidation suit and is reeling from a protracted tax dispute with the Kenya Revenue Authority (KRA) which had its genesis in October 2006 when Keroche filed a judicial review application challenging KRA’s decision to classify the company’s fortified wine products under Harmonised System Code Tariff heading 22.04 instead of 22.06 in respect of sales and trading activities for the period 2002 to 2006.
The reclassification of Keroche’s products by the taxman resulted in a Sh1.1 billion tax assessment from KRA of which Sh802.9 million was attributable to income tax, excise duty and withholding tax while Sh305.1 million was attributable to Value Added Tax, Interest and Penalties against the brewer.
Keroche has since been caught up in the corridors of justice protesting the demands by the taxman on the business.
On March 16, 2022, the brewer and KRA entered an agreement on a payment plan which was expected to have the brewer settle Sh957 million worth of undisputed tax arrears.
The agreement also saw the taxman lift the agency notices that had seen the brewer’s operation grind to a halt following the freezing of its bank accounts.
Even in her stepping down, Mrs Karanja took a swipe at the KRA and its enforcement action.
“I also feel compelled to express my views on the crucial discussion surrounding the alcoholic beverages industry. The ongoing debate is healthy, but we must recognise that we are addressing a vital sector of our economy," she said.
"This year alone, we anticipate tax revenues exceeding Sh250 billion from the alcohol industry. Therefore, our conversation must be conducted with sobriety and a progressive mindset. It is crucial to regulate the industry without undermining its existence.”
The new CEO will also have to deal with an insolvency petition filed against the brewer over a Sh233.7 million debt owed to Nairobi law firm – Hamilton, Harrison & Mathews.
She says stepping down will allow her to focus on her role as the Senator of Nakuru County.
