Court has issued an arrest order for Nakuru Senator Tabitha Karanja after she failed to appear for the hearing of a case where she is charged with tax-related issues.
The hearing was set for Wednesday but failed to proceed.
After the prosecution changed the charge sheet in the Kes 14.5 billion tax cheating case, the lawmaker entered a not-guilty plea on April 13 of this year to new tax evasion accusations.
At that time, the previous CEO of Keroche Breweries' legal team informed the court that they preferred an out-of-court settlement.
Keroche would have to notify the commissioner in writing under the Tax Procedure Act, KRA officer Irene Muthee said to the court. Thus there had been no agreement to settle the dispute out of court.
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The court ordered Keroche 45 days to start the out-of-court settlement process to avoid a full trial.
In late 2022, the IRS filed a lawsuit against Keroche Breweries for contempt of court.
This resulted from Keroche's breach of a new payment arrangement mandated by the same court and requiring the brewer to pay current taxes and monthly payments on the tax debt.
According to the taxman's application, Keroche allegedly failed to honour payments totalling Kes 30.3 million, including the payment of Kes 16 million in two equal instalments in August.
Keroche also owed 14.3 billion shillings in current taxes.
“Keroche Breweries Limited has been adamant in disregarding the court order of July 14, 2022 notwithstanding that order was issued in the presence and with knowledge and understanding of the counsel of Keroche Breweries,” KRA said in its application to the court then.
Senator Karanja in June this year announced her decision to step down as Keroche Breweries CEO during the commemoration of the company’s 25th anniversary since inception.
