How Kenya Revenue Authority (KRA) is Killing Businesses

Ms Tabitha Karanja CEO Keroche breweries

Keroche’s main competitor, Kenya Breweries Ltd which has monopolized the beer market in the region since independence is alleged to have been engaged in some vicious sabotage activities against its local competitor, they are perhaps fully involved in the tribulations facing Keroche

By The Weekly Vision

The Kenya Revenue Authority has transformed itself into a deadly business-killing machine, especially for local business entities. Officers from KRA do not just come to your premises to demand revenue owed to the institution they work for, they also come demanding bribes running into millions of shillings, a sure way of killing businesses.

In the recent past, KRA has dominated the local news media headlines after it closed the Naivasha-based Keroche Breweries Ltd, an initiative by local investors Tabitha Karanja who has over the years invested heavily in the beer-making plant. Keroche’s Kenyan competitor, Kenya Breweries Ltd which has monopolized the beer market in the region since independence is alleged to have been engaged in some vicious sabotage activities against its local competitor, they are perhaps fully involved in the current tribulations facing Keroche.

Another brewer, South African Breweries was also forced out of the Kenyan market after spending close to Khs. 322 million building a modern beer manufacturing plant in Thika town. It is an open secret that the same Kenya Breweries has been “Secretly” waging a deadly vicious war against Keroche Breweries, they are backed by powerful individuals domiciled within the highest levels of KRA with the capacity of ensuring that the operations of its competitor grind to a halt.

Golden Africa Kenya company Chairman Mr Fathi Saeed confirmed to The Weekly Vision that their MD Abdulghani Alwojih has sent out an internal memo to the effect that all Golden Africa Kenya employees will be sent on forced unpaid leave until further notice

Golden Africa Kenya

Golden Africa Kenya was manufacturing fast-moving consumer goods until a few weeks ago; they are now closing their doors thanks to the economic massacre triggered by none other than the Kenya Revenue Authority. Company Chairman Mr Fathi Saeed confirmed to The Weekly Vision that their MD Abdulghani Alwojih has sent out an internal memo to the effect that all Golden Africa Kenya employees will be sent on forced unpaid leave until further notice.

The company manufactures popular brands sold on the Kenyan market including Avena, Pika cooking oils, Zenta, and Saba bar soaps among others

Mr Alwojih said: “We have been forced to close down our operations by KRA. The manufacturing of our products will stop because of alleged tax arrears we owe the KRA. They never gave us a chance and we don’t know how they expect us to pay any tax when we are out of business.”

He continued: “With the closure, how do they hope to recover whatever they allege we owe them? Who are these faces in KRA forcing them to adopt a ruthless, relentless and uncompromising stand? Is that the best way to collect revenue for the government when everybody is reeling from an adverse negative business environment in the economy?”

Golden Africa Kenya Limited launched its operations in Kenya in 2015. The company’s core business activities include manufacturing edible oils, cooking fat, multipurpose washing bars and detergent. Its popular brands on the market include Avena, Pika cooking oils, Zenta, and Saba bar soaps among others. Golden Africa Kenya Limited Mother Company is owned by Saudi Arabia’s Hayel Saeed Anam (HSA) family.

The CEO said the company’s business had been adversely hit by the 2019 explosion of the deadly Covid 19 pandemic and the subsequent lockdown measures put in place by authorities. 

We were only still trying to recover when KRA hit us below the belt. “Despite the policy measures that saw the State reduce personal income tax top rate from 30% to 25%, instituted a 100% tax relief for low-income earners, lowered the VAT rate, and reduced the turnover tax rate for SMEs, the economic fallout of COVID-19 is still being felt and we are no different – why should KRA come after us at such dire times?”

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