Over 26 alcohol manufacturers who had been shut down during President Uhuru Kenyatta’s administration have reportedly resumed operations.
Thika-based Africa Spirits Ltd – owned by businessman Humphrey Kariuki, Mount Kenya Breweries Ltd, Rift Valley Brewing Company and Wananchi Breweries Ltd, Thika-based Vinepack Ltd, Big Five Breweries Ltd, Elle Kenya Ltd, Lumat Company Ltd and Tona Brewing Ltd are among those re-opened as the new government continues to reverse actions taken in the previous regime.
Deputy president, Rigathi Gachagua during a Kenya Association of Manufacturers (KAM) event last week, stated that the current government will not allow such moves by KRA to close businesses and issuing agency notices for business it was at fault with.
“The issue of closing factories for taxpayers who are suffering is a thing of the past because it is foolish. The issue of tax notices and agency notices where you close accounts, if you shut down an account for six months (and) somebody cannot do business, where will you collect tax the following year?
When you shut down a factory, those employees lose their jobs (yet) they were paying PAYE (Pay As You Earn tax), where will you get the money from?” Gachagua asked.
The deputy president went on to criticize KRA for closing the Africa Spirits Ltd factory in Thika, noting that it had cost the authority a huge amount of revenue.
“That factory was paying about Sh50 million in terms of tax every month. They send policemen there, shut it down, arrested Humphrey Kariuki – a very enterprising Kenyan, an honorable man, a man who has toiled through his life – locked him up for four days with ordinary criminals and KRA lost Sh50 million every month. For three years we have lost a whooping Sh1.8 billion. It was a foolish decision, and such things will never happen in the Ruto administration,” the Deputy President said.
KRA has not confirmed or denied the reopening of the alcohol manufacturers, having been closed due to tax disputes and failure to meet other standards.
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