A Nairobi court has ordered the arrest of Nakuru Senator Tabitha Karanja after she failed to appear for the hearing of a case where she is charged with tax related issues.
The case was set for hearing on Wednesday but failed to proceed.
The lawmaker on April 13 this year pleaded not guilty to fresh tax evasion charges after the prosecution amended the charge sheet in the Ksh.14.5 billion tax evasion case.
Lawyers of the former Keroche Breweries CEO told the court then that they wanted the matter resolved outside of court.
However, Irene Muthee, a KRA officer, told the court that there had been no agreement to settle the matter outside of court because Keroche would be required to notify the commissioner in writing under the Tax Procedure Act.
As a result, the court gave Keroche 45 days to begin the out-of-court settlement process, failure to which the case would go to full trial.
The taxman sued Keroche Breweries for contempt of court in late 2022.
This was after Keroche defaulted on a new payment plan ordered by the same court which required the brewer to make monthly payments on tax arrears and honour current taxes.
According to the application by the taxman, Keroche did not honour payments amounting to Ksh.30.3 million including the payment of Ksh.16 million in two equal tranches in August.
Keroche was further in default of Ksh.14.3 billion 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.
“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. 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 said then.
