Tabitha Karanja, a senator from Nakuru, has been detained by a Nairobi court after failing to show up for the hearing in a case in which she is accused of having tax-related problems.
On Wednesday, a hearing was scheduled for the case, but nothing happened.
After the prosecution updated the charge sheet in the Ksh. 14.5 billion tax evasion case, the lawmaker entered a not guilty plea on April 13 of this year to new tax evasion accusations.
At that time, the previous CEO of Keroche Breweries' legal team informed the court that they preferred an out-of-court settlement.
A KRA officer, Irene Muthee, however, informed the court that there had not been a deal to resolve the dispute out of court because Keroche would have had to inform the commissioner in writing in accordance with the Tax Procedure Act.
In order to avoid a full trial, the court ordered Keroche 45 days to start the out-of-court settlement process.
In late 2022, the IRS filed a lawsuit against Keroche Breweries for contempt of court.
This came about as a result of Keroche's breach of a new payment arrangement mandated by the same court and requiring the brewer to pay current taxes as well as monthly payments on tax debt.
Keroche allegedly failed to honor payments totaling Ksh. 30.3 million, including the payment of Ksh. 16 million in two equal installments in August, according to the taxman's application.
Furthermore, Keroche owed Ksh. 14.3 billion in current taxes.
"Keroche Breweries Limited has been adamant in disregarding the court order of July 14, 2022, notwithstanding that order was issued in the presence and with knowledge and understanding of the counsel of Keroche Breweries," KRA stated in its motion to the court at the time.
During the celebration of the company's 25th anniversary since its founding in June of this year, Senator Karanja revealed her intention to stand down as CEO of Keroche Breweries.
"After 25 years of leading the way as the captain, it's time for me, Tabitha Karanja, to hand the helm over to the next group of corporate leaders. I hereby announce my intention to resign as CEO of Keroche Breweries, handing over the reins to a worthy successor, she stated at the time with a great deal of pride.