Tabitha Karanja steps down as Keroche CEO, hands over to Potas Anaya
Nakuru Senator Tabitha Karanja during a past media briefing.
Nakuru Senator Tabitha Karanja has stepped down as chief executive officer (CEO) of Keroche Breweries Ltd after 25 years at the helm, handing over the reins to the Naivasha-based brewer's chief financial officer Potas Anaya.
Ms Karanja, who was the company's founder and CEO, announced her resignation on Tuesday morning as the company kicked off its 25th anniversary celebrations.
"Today marks a significant milestone as I make an important announcement. After 25 years as captain, the time has come for me, Tabitha Karanja, to pass the baton to a new generation of business leaders. It is with immense pride that I announce my decision to step down as CEO of Keroche Breweries and hand over to a deserving successor," said Ms Karanja in her farewell speech.
Ms Karanja, who legally changed her name to Keroche, was the face behind the name, building the Naivasha-based brewer into a national brand.
In 2022, she had changed her name from Tabitha Mukami Muigai-Karanja to Tabitha Karanja Keroche.
But she leaves behind a company embroiled in a protracted tax dispute with the Kenya Revenue Authority (KRA).
The dispute began in October 2006 when Keroche Breweries Ltd filed an application for judicial review challenging the KRA's decision to classify the company's fortified wine products under Harmonised System Code Tariff heading 22.04 instead of 22.06 in respect of sales and trading activities for the period 2002 to 2006.
The taxman's reclassification of Keroche Breweries Ltd's products resulted in a Sh1.1 billion tax assessment from the KRA, of which Sh802.9 million was for income tax, excise duty and withholding tax, while Sh305.1 million was for VAT, interest and penalties against the brewer.
Keroche has since been caught up in the corridors of justice, protesting against the taxman's demands on the company.
On 16 March 2022, Keroche Breweries Ltd and the KRA agreed on a payment plan that would see the brewer pay Sh957.0 million in undisputed tax arrears.
The agreement also saw the taxman lift the agency notices that had brought the brewer's operations to a standstill by freezing its bank accounts.
Even as she resigned, Karanja took a swipe at the KRA and its enforcement actions.
"I also feel compelled to express my views on the crucial discussion surrounding the alcoholic beverages industry. The ongoing debate is healthy, but we must recognise that we are dealing with a vital sector of our economy. This year alone, we are expecting over Sh250 billion in tax revenue from the alcohol industry. Therefore, our conversation must be conducted with sobriety and a progressive mindset. It is important to regulate the industry without undermining its existence," said Ms Karanja.
Karanja says stepping down as CEO will allow her to focus on her role as Nakuru County Senator.
"I am now ready to devote myself wholeheartedly to the honour of serving as Senator for Nakuru County and Deputy Majority Leader in the Senate, representing our remarkable nation," said Ms Karanja.
