Why Court Wants Senator Tabitha Karanja Arrested

The case was set for hearing on Wednesday, but it failed to proceed. The lawmaker had on April 13, 2023, pleaded not guilty to fresh tax evasion charges after the prosecution amended the charge sheet in the case.

Marvin Chege Marvin Chege
Jul 26, 2023 - 14:54 Updated: Jul 26, 2023 - 15:30
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Why Court Wants Senator Tabitha Karanja Arrested
An image of Nakuru Senator, Tabitha Karanja. /FILE

The High Court on Wednesday, July 26 ordered the arrest of Nakuru Senator Tabitha Karanja after she failed to appear for the hearing of a Ksh14 billion tax evasion case.

The case was set for hearing on Wednesday, but it failed to proceed. The lawmaker had on April 13, 2023, pleaded not guilty to fresh tax evasion charges after the prosecution amended the charge sheet in the case.

Milimani Court Senior Principal Magistrate Esther Kimilu criticised the Nakuru Senator for failing to show up in court despite knowing that the case was coming up for hearing.

“The accused person knew that the matter was listed for hearing and failed to show up. I hereby discharge the two witnesses in court today and proceed to issue a warrant of arrest against the accused person,” Kimilu ruled.

Former Keroche Breweries CEO, Tabitha Karanja. /FILE

Karanja was arrested alongside her husband Joseph in 2019 over the matter by the Directorate of Criminal Investigations (DCI) detectives but was later set free on a Ksh5 million bond while her husband was released on a Ksh1 million bond.

The Office of the Director of Public Prosecutions (ODPP) then withdrew charges against Karanja's husband due to his health condition.

On Tuesday, June 13, Karanja issued a moving message while announcing that she was stepping down as the Chief Executive Officer (CEO) of Keroche Breweries.

Speaking during Keroche's 25th-anniversary celebrations, an emotional Karanja termed her departure from the helm of the beverage company after two and a half decades as a milestone in her career.

“Having navigated the journey as the captain for 25 years, the time has come for me, Tabitha Karanja, to pass the baton to a new generation of business leaders. With immense pride, I hereby announce my decision to step down as the CEO of Keroche Breweries, entrusting the leadership to a deserving successor,” announced Karanja.

In her role as CEO, she described how she took the brewery from its humble beginnings to becoming the second-largest brewery in Kenya and the largest owned by Kenyans.

Karanja highlighted the challenges she faced while at the helm, such as the COVID-19 pandemic, which resulted in mass layoffs, and the dispute the company had with the Kenya Revenue Authority (KRA) over tax areas. 

She maintained that despite challenges, Keroche managed to rebuild its strength and regain its footing, and its production capacity has been restored. 

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 changed her name from Tabitha Mukami Muigai-Karanja to Tabitha Karanja Keroche.

She however left Keroche facing a protracted tax dispute with KRA which 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 Ksh1.1 billion tax assessment from the KRA, of which Ksh802.9 million was for income tax, excise duty and withholding tax, while Ksh305.1 million was for VAT, interest and penalties against the brewer.

On July 14, 2022, the High Court issued orders for the firm to re-open on the condition that the brewer paid Ksh8 million on the 30th day of each month to the KRA until the next hearing which was scheduled for September 22, 2022.

Former Keroche Breweries CEO Tabitha Karanja with President William Ruto during a UDA campaign in 2022. /FILE

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