Keroche Tax burden

The KRA is set to collect tax of Kshs 9,116,835,985 .00 from Keroche Breweries Limited with regard to products manufactured and marketed by Keroche breweries Limited. This follows a big win by the Kenya Revenue Authority in the six (6) Appeals filed by Keroche before the Tax Appeals Tribunal in 2015 and 2017 respectively. 2.  In three of the Appeals, the contention was the manufacturing process of Vienna Ice Brand of Vodka. The brewer argued that, Vienna Ice brand of Vodka was not a distinct product from Crescent Vodka since Vienna Vodka was produced by diluting Crescent Vodka which process did not amount to manufacture. 3.  KRA relied on the Compounding of Denatured Spirits Act Cap 123 and argued that the process undertaken by Keroche Breweries was compounding within the meaning of the Act. Compounding of spirits also amounted to manufacture of new product within the definition of Customs & Excise Act, CAP 472 (now repealed). 4. In the other three appeals, the contention was with regard to classification of pineapple based wines. The Brewer had argued that what they produced was fortified wines which should be classified under HS Code 22.04 which attracted lower excise duty rate of 40%. Their position was that the classification was specific for any fortified wine. 5.   KRA’s position was that HS code 22.04 was reserved for wines based on grapes and the Keroche’s fortified wine was purely fermented pineapple as such is to be classified under HS Code 22.06 which is for any other fermented beverage. HS code 22.06 attracted a higher excise duty rate of 60%. 6.    The Tax Appeals Tribunal in its’ judgments delivered on 9th March, 2020 held that: 6.1.   Keroche Breweries Limited was involved in the compounding of spirit which amounts to manufacture within the meaning in Excise Duty Act, 2015 and Customs and Excise Act, CAP 472 (repealed)as such Vienna Ice was a distinct product for which Excise Duty was payable; 6.2.  With regard to Fortified wines produced by the Brewer, the Tribunal guided by the World Customs Organization explanatory notes on HS code found that HS code 22.04 was for grape based wines and the correct classification was HS code 22.06 as the Keroche’s wine is a mixture of fermented pineapple and alcohol. 7.  The Tribunal however faulted the Authority for levying interest and late payment penalties for the period the disputes were being litigated at the High Court and the Court of Appeal which had directed that the matters be heard at the Tax Appeals Tribunal.

Nairobi Water seeks Raila’s help for water infrastructure funding

The Directors of the Nairobi Water and Sewerage Company on Thursday held a special meeting with AU’ special envoy for infrastructure  Raila Odinga to deliberate on possible ways of improving Water infrastructure in Nairobi. The meeting that was held at Odinga’s pro Upperhill office focused on increasing water connectivity, getting more funds for sanitation activities. According to Karen Nyamu who is one of the Directors , Odinga promised to help source more funds that will help meet the water deficit in Nairobi. This will involve getting more funds for sinking…

Sanlam General Insurance rolls out Road Assistance services

Sanlam General Insurance, a subsidiary of listed non-bank financial services provider Sanlam Kenya, has today launched Sanlam Road Assistance, a comprehensive private motor insurance service geared towards improving the experience of its motor insurance customers. The service which is in line with the firm’s commitment to offer solutions to customer needs will provide road assistance to all motor private – comprehensive customers. This includes, on spot accident assessment, free post-accident support, towing and an optional add on for courtesy car and taxi service to complete the journey. Speaking during the…

Women and Girls Living with Disabilities get training on Digital Marketing  

By Mourice Seretta This Ability Trust a charitable organization held a three day digital marketing training in Nairobi aimed at equipping young women and girls with disabilities with digital marketing skills in order to begin to utilize technology as a platform for increasing access to sexual and reproductive health rights and other economic opportunities. This Ability Managing Director Lizzie Kiama said the training programme covered key aspects of internet, social media and mobile marketing and was facilitated through three main categories namely, introduction to digital marketing, social media and mobile…

Suzuki Kenya unveils new multi utility Ertiga

There is a growing demand for 7-seater cars in Kenya with majority of the all the new vehicle registrations made in 2018 being station wagons Motor vehicle distributor, Toyota Kenya, has introduced the all new multi utility passenger vehicle Suzuki Ertiga to the Kenyan market. The launch comes at a time when there is growing demand for 7-seater cars in Kenya with majority of the new vehicle registrations made in 2018 being station wagons. For the past five years, there has been a trend with the country registering a shift…

Huawei brings Huawei y9 Prime with a panoramic viewing experience

The HUAWEI Y9 Prime 2019 is set to come out later this month. The new device boasts an all-new HUAWEI Ultra Full View Display, a completely bezel-less design free of any notches, holes or a slider. The HUAWEI Y9 Prime 2019’s 6.59 inch FHD+ Ultra Full View Display, is entirely just the display, no bezels or notches, creating a whole new viewing experience. Speaking of the soon to be launched device in the market, Huawei Mobile Country President, Steven Li said, “Huawei, a brand known for meaningful innovations for its…

Greenpeace: 2019-20 Budget Fails to Cater For Kenyan’s Electricity Needs

Responding to the budget speech by Treasury Cabinet Secretary Henry Rotich, Greenpeace Africa’s Senior Campaign Manager, Renee Olende has said: “The Ministry of Energy has failed Kenyans yet again. The budget has a narrow focus; catering for manufacturers will not ensure adequate accessibility and efficient supply of electricity to urban, peri-urban and rural communities. Approximately 40% of Kenya’s population has access to electricity, in contrast, only 15% of rural inhabitants benefit from electricity supply. Even in urban areas,  the quality of power is low and supply is unreliable. “Kenya’s renewable…

THREE KENYAN STARTUPS WIN FULLY FUNDED TRIP TO THE OSLO INNOVATION WEEK 

Three local startups have been selected for a fully funded trip by ICT Norway to showcase at the Oslo Innovation Week in Norway where they will have an opportunity to get funding that will transform their ideas to full businesses. The three tech enterprises, Arigiene Limited, Gjenge and Escon Leather Creations impressed a panel of judges that included ICT Norway representatives Torgeir Waterhouse and Christopher Hoff during a track event for the Nairobi Innovation Week that is currently ongoing. These startups will be funded by ICT Norway, a public sector organization that links the Norwegian…

Generation Africa: Inspiring young Africans to become Agri-Food entrepreneurs

Econet and Yara launch “Generation Africa”, a partnership initiative bringing the dynamism of youth entrepreneurship to Africa’s agri-food sector, with its $100,000 GoGettaz entrepreneurship competition Pan-African telecommunications, media and technology group, Econet (www.Econetwireless.com), and global crop nutrition leader, Yara International ASA, today launch “Generation Africa”, a partnership initiative to inspire young African entrepreneurs to join the agri-food sector for its viable business opportunities. Generation Africa will reach thousands of young people through its “GoGettaz”competition, which will award US$100,000 in prize money to two exceptional business ventures in the agri-food sector.…

 Plastic Ban Requires regional policy for its success

Responding to the news that the National Environment Management Authority (NEMA) has issued a warning over the return of plastic bags in the country, Greenpeace Africa’s Campaigner  Amos Wemanya has said: To curb the influx of contraband single-use plastics into Kenya, the government needs to improve its coordination and collaboration among various enforcement agencies including the NEMA, National Intelligence Service and Police units acting both within and across borders to nab the illegal suppliers of banned single-use plastic carrier bags.   “Unscrupulous businessmen and traders continue to take advantage of…