Kenya Breweries Limited (KBL) Faces Legal Dispute With KRA Over Tax Arrears Amounting to KSh 12.037 Billion

 In a hurry? Here’s a quick summary…

• Kenya Breweries Limited (KBL) is facing a legal dispute with the Kenya Revenue Authority (KRA) over tax arrears totaling KSh 12.037 billion.

• The disagreement arose after KRA revoked an earlier decision to waive a portion of KBL's tax liability, leading to ongoing legal proceedings now awaiting determination at the High Court.

KRA CG Humphrey Wattaga said Kenya Breweries Limited owed KRA over Ksh. 12.03 billion. Photo: KRA. Source: Twitter

Kenya Breweries Limited (KBL) faces a legal challenge from the Kenya Revenue Authority (KRA) regarding tax arrears totaling KSh 12.037 billion. 

This disagreement arose after KRA reversed its earlier decision to waive a tax claim issued during the tenure of retired President Uhuru Kenyatta.

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Initially, KBL was assessed a tax liability of KSh 11.7 billion for remission on Keg beer. However, following assessment, KRA reduced this amount to KSh 8.2 billion. 

Additionally, KBL is accountable for KSh 3.83 billion in outstanding debt accrued between July 2015 and June 2020. The revised assessment led to a legal confrontation between the two entities.

KRA Commissioner General, Humphrey Wattanga, disclosed that the Tax Appeals Tribunal is overseeing the resolution of the dispute. 

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Despite initially abandoning the KSh 8.2 billion tax liability, KRA opted to rescind this decision, triggering ongoing legal proceedings. 

The matter is now awaiting a verdict at the High Court, underscoring the complexity and significance of the conflict between KBL and KRA.