Keroche Vs KRA: Tabitha Karanja Dismisses Warrant Of Arrest Over KSh 14b Tax Evasion Case

• Keroche Breweries founder Tabitha Karanja was supposed to appear before Milimani Senior Principal Magistrate Esther Kimilu
• The Nakuru Senator said she was engaging Kenya Revenue Authority (KRA) in an alternative dispute resolution regarding the KSh 14.5 million tax evasion case
• Karanja accused the court over what she termed a lack of coordination and communication from the parties charged with managing the issue

Nakuru Senator Tabitha Karanja has criticised a warrant of arrest issued by Milimani law courts against her.

Senior Principal Magistrate Esther Kimilu issued the orders after Karanja failed to appear for KSh 14.5 million tax evasion case hearing.

Karanja accuse court of miscommunication

In a ruling issued on Wednesday, July 26, Magistrate Kimilu averred that Karanja was aware of the proceedings but chose to stay away.

"The accused person knew that the matter was listed for hearing and failed to show up. I hereby discharge the two witnesses in court today and proceed to issue a warrant of arrest against the accused person," read the ruling in part.

Karanja called out the court over lack of coordination and communication, saying they were not aware together with the Kenya Revenue Authority (KRA).

The senator reiterated that the court ordered the two parties to engage in an ongoing dispute resolution mechanism.

"We were not represented in court due to the fact that the Kenya Revenue Authority and Keroche Breweries are currently engaged in an Alternative Dispute Resolution (ADR) process as ordered by the same court. The first meeting was held on June 6, 2023, and the process is ongoing.

"It is critical that these important ADR processes are not undermined by lack of coordination and communication by the various authorities charged with managing this matter," Karanja argued.

She regretted having learned about the court order from media reports, calling for an amicable resolution.

Keroche and Karanja were charged with manipulating excise duty returns less by KSh 1.8 billion and an incorrect statement impacting payable duty by KSh 3.6 billion.

Other charges include manipulating Value Added Tax (VAT) returns by KSh 196 million.

Karanja charged with 10 counts

In April 2023, Keroche Breweries CEO was charged with 10 counts of tax evasion amounting to KSh 14.5 billion.

The prosecution amended the charge sheet to eliminate "few errors", meaning that the senator needed to plead to the charges afresh.

The court has given the accused 45 days to reach an out-of-court settlement with KRA Commissioner, failure to which the matter will proceed in court.

She is accused of, among other charges declaring the excise duty of 820,601 litres of Viena Ice drink at KSh 27 instead of KSh 175.