Former MD invites more creditors to join liquidation case against Keroche

Embattled Naivasha-based distiller, Keroche Breweries, is staring at an uncertain future as the High Court plans to commence an insolvency case against it.

Early this week, the company’s former managing director, Sam Shollei, invited more creditors to join the liquidation case filed in May over Sh45 million debt that has since ballooned to Sh75 million.

The debt stems from a compensation award for wrongful termination, which has increased with interest and legal costs.

Shollei says that the company has failed to satisfy the judgment debt, despite repeated demands and the passage of nearly three years since the Employment and Labour Relations Court made the award.

In June, Keroche lost a bid to halt liquidation proceedings after the High Court in Nakuru accused the brewer of buying time not to honour debt.

The court questioned why Keroche sought leave three years after the judgment, claiming ignorance of taxation issues despite filing submissions on taxation.

“The record suggests that the application filed by Keroche in March 2025 is merely intended to delay execution of the decree,’’ the ruling read.

Yet this is not the first time the brewer has faced a possible liquidation. In 2022, its law firm in a tax evasion case with the Kenya Revenue Authority (KRA) sought to shut it down and a receiver was appointed to oversee its operations.

The law firm noted that Keroche had been unable to settle its legal fees in a Sh9.1 billion case against KRA.

“In the circumstances, it is just and equitable that the company be liquidated," the firm stated in its petition, a case still active in court.

Keroche, owned by Nakuru Senator Tabitha Karanja and family, has been battling closure after it reneged on its deal with KRA to settle tax dues amounting to Sh22 billion.

The dispute began in October 2006 when Keroche challenged KRA’s decision to reclassify its fortified wine products under Harmonised System Code Tariff heading 22.04, rather than 22.06, for sales and trading activities from 2002 to 2006.

This reclassification led to a tax assessment by KRA amounting to Sh1.1 billion against Keroche, which included Sh802.9 million for income tax, excise duty, and withholding tax, and Sh305.1 million for Value Added Tax, interest and penalties.

The two parties have since entered into negotiations to settle the matter outside the courtroom, prompting the KRA to seek an adjournment from the court to finalise the settlement.