A few hours after the Director of Public Prosecutions, Noordin Haji, ordered the arrest of Keroche Breweries directors Tabitha Karanja and Joseph Karanja citing tax evasion, many Kenyans online have expressed their displeasure over the same.
In the statement released on Wednesday afternoon, the DPP ordered the arrest of the two over an alleged tax evasion amounting to Ksh14.45 billion.
According to Haji, the directors, whose company has been on the rise in the last few years, would face 10 counts of tax fraud.
The revelations were made in an inquiry file submitted by the KRA Commissioner General, which put the allegedly evaded tax at Ksh14,451,836,375.
However, this could not convince most Kenyans that the privately-owned enterprise had indeed been evading tax, especially after Tabitha emotionally narrated how her company had been loyal, always paying taxes in time.
While speaking to a local media house on phone, Tabitha stated her company had complied with the taxman’s regulations for over the 20 years it had been in business, questioning whether her business was being targeted unfairly for competing with multinational beer companies.
Tabitha Karanja : I have worked and complied all these years, and then you just get a WhatsApp.
Does it mean that when you build an enterprise that is competing with multinationals you must close it one day ? #KTNPrime #KTNPointblank pic.twitter.com/P8lwKkZb47— ktn (@KTNKenya) August 21, 2019
Her sentiments were echoed by many Kenyans online, including those who appeared at most of the local TV stations for the morning breakfast shows, with many reading malice in the government’s move.
Some suspected that there were some powerful figures inside the government seeking to take advantage of Keroche’s tribulations, in order to extract personal benefits by growing their own companies.
UPDATE: Keroche Breweries CEO denies KSh 14B tax fraud allegations;
'Is it criminal for local investors to do business in their own motherland?' ~ Tabitha Karanja. pic.twitter.com/XkCn5p8kK8
— NTV Kenya (@ntvkenya) August 21, 2019
Kapseret MP, Oscar Sudi, on his part, blamed KRA officials for the current tax evasion cases, claiming businessman Humphrey Kariuki’s Africa Spirits and Keroche were being unfairly targeted by powerful figures who have big shares in the East Africa Breweries Limited (EABL).
“KRA officials are to blame for the tax evasion cases totalling up to 41B for Humphrey Kariuki’s Africa Spirits and 14B allegedly evaded by Tabitha Karanja’s Keroche Breweries. First, the figures look imaginary, malicious and unrealistic.
“Here is the reason; I want to challenge Kenyans to find out who is the main shareholder with over 50% shares in Kenya Breweries over the last one year?
“There is no objectivity in the crackdown, this is just trade wars and someone wants to enjoy a business monopoly in this country. WE ARE NOT FOOLS,” posted Sudi on Facebook.
Here are some of the bitter comments from Kenyans;
https://twitter.com/MutahiNgunyi/status/1164250453082812416
Whereas tax evasion is serious crime&considering our economic situation&high rate of unemployment I urge KRA to negotiate repayment plan 4 evaded taxes with Keroche&HumphreyKariuki instead of criminal enforcement.This fight must not leave the country in worse situation than it is
— KIPCHUMBA MURKOMEN, E.G.H (@kipmurkomen) August 21, 2019
Someone is overwoking, 'the hand of god' (EABL) has fallen on Tabitha Karanja. Keroche breweries is being fought with all kinds of forces… SMH 🤦♂️
— LEGIT DAILY (@iamlegitdaily) August 21, 2019
Patrick Obath: This case that is happening now (alluding to the Keroche breweries case), it could be that somebody within the system is looking to extract value…I don't believe that an organization that is this big can make such a huge mistake.#AMLiveNTV @debarlinea pic.twitter.com/Wi1dr2bMod
— NTV Kenya (@ntvkenya) August 22, 2019
This is the hand of @EABL_PLC. They are alcohol cartels out to destroy competition like @CocaColaAfrica to softa. The government is just the agent to do their bidding
— EmperorJamal (@birichiKE) August 22, 2019
PS:
We are currently in a country where loyalty to the President is the only way to survive. I am observing the trend in the arrest of Humphrey and now Keroche. There is more than meets the eye😂— Bonev Noel (@jatelaw) August 21, 2019
Keroche Industries Ltd is just suffering from bad trade sportsmanship from froreign competitors
EABL
Tabitha Karanja#JKLive
Matiangi
Uhuru
Matiang'i
Uhuru pic.twitter.com/Q6AcpOGl8P— Patel Mtetezi (@PatelMtetezi) August 22, 2019
Tax evasion arrests: I believe that matters of tax should not be criminalised, there are two sides to this story. It smacks of a lot of unfairness in that respect. – Stanley Manduku #AMLiveNTV @debarlinea pic.twitter.com/d5AoxGeItk
— NTV Kenya (@ntvkenya) August 22, 2019
Why invade the Factory? Amounts to harassing our local entrepreneurs!
— Peter Arden Andere (@anderearden) August 21, 2019
DCI and DPP,are you going to pay Keroche twice that 14B,just incase you have soiled her name and company reputation???
— Mobby (@Mobby83295144) August 21, 2019
#JKLive I concur with @kipmurkomen We all kmow tax evasion is a serious offence by all standards. However, KRA should look at the bigger picture. Levels of unemployment are high, we can't afford more job losses. Let Govt seek arbitration or alternative legal channels
— Steve Njenga (@Stevenjengah) August 21, 2019
This is terrible why a you paralyzing someone business?,,, 14.5b where was KRA all those years,,, #JK live @KoinangeJeff
— Alfred Yegon (@AlfredYegon12) August 21, 2019