Kebs takes permits war with Keroche to Court of Appeal

The Kenya Bureau of Standards (Kebs) has taken its fight against Naivasha-based Keroche Breweries to the Court of Appeal following a ruling that quashed its decision to cancel the beer manufacturer’s permits.

Kebs last Friday filed a notice of appeal in the High Court expressing its displeasure with the ruling that reversed its cancellation of Keroche’s permits.

Justice George Odunga also declared a directive issued by President Uhuru Kenyatta ordering a crackdown on illicit brews as null and void.

Justice Odunga’s ruling was to see Kebs grant Keroche a clean bill of health. Keroche had sued Kebs, the Kenya Revenue Authority (KRA), the National Police Service and the Ministry of Interior and Co-ordination arguing that they are part of a government-orchestrated conspiracy to shut the its operations.

Kebs wants the Court of Appeal to uphold the decision that letters it sent to Keroche terminating the permits were issued legally.

“Take notice that Kebs, the fourth respondent herein, being dissatisfied with the judgment of Justice Odunga intends to appeal to the Court of Appeal against the said judgment only as regards Kebs’ letter (to Keroche) dated July 3,” the notice of appeal reads.

Keroche and six other brewers that had sued over the cancellation of their permits scored a win before Justice Odunga on January 15 when he held that their operations had been interrupted unlawfully.

The Naivasha-based brewer risks closure following its war against the KRA which has also refused to renew its excise tax licence, claiming that Keroche has been cooking books in an elaborate tax evasion scheme.

READ: State is scheming to shut down our operations, claims Keroche

The KRA in July ordered Keroche to cease production of any taxable goods. Keroche however obtained a court order from Justice Odunga stopping the taxman from shutting it down.

Other firms involved in the suit were Crown Beverages, Mount Kenya Breweries, Kapari Limited, Biscepts Limited, Michael Wanjiru and Daniel Kwenga.

The judgment however did not address a Sh1 billion dispute between Keroche and Kebs over alleged unpaid taxes.

Justice Odunga in his ruling argued that the Kebs did not follow due process by giving Keroche and the other brewers a chance to defend allegations that they had been producing illicit alcoholic beverages.

Keroche’s Crescent Vodka was among 221 alcoholic products outlawed by the Kebs in a list that was published in June last year. Kebs officers also temporarily closed the Keroche’s production plant before the brewer moved to court to have its factory re-opened.

“The decision made by Kebs cancelling Keroche’s permits and licences transmitted vide the letter dated July 3, 2015 is illegal and unconstitutional and is hereby quashed,” Justice Odunga ruled last month.