Trouble Deepens for Keroche as Former Employees Seek Sh22 Million Payment

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NAIROBI, Kenya- Trouble is brewing for Keroche Breweries after auctioneers moved to recover more than Sh22 million in salary arrears owed to former employees, with the company’s Naivasha factory becoming the centre of a fresh legal battle.

The auctioneers arrived at the brewery premises seeking to execute court orders over unpaid dues arising from a dispute involving former workers.

The move disrupted operations at the facility as efforts were made to recover the outstanding amount.

The latest action adds to a growing list of financial and legal challenges facing the brewer, which has in recent years faced disputes involving former employees, tax matters and creditor claims.

In a separate case, former Keroche Managing Director Sam Shollei petitioned the court seeking liquidation of the company over an unpaid compensation award, which he said had grown from an initial Sh45.5 million award to more than Sh75 million after interest and costs.

The Employment and Labour Relations Court had earlier awarded Shollei compensation after finding his termination unfair, with subsequent attempts to recover the money leading to further legal proceedings.

Keroche Breweries, founded by Senator Tabitha Karanja and her husband Joseph Karanja, has previously described itself as a homegrown company that has faced numerous regulatory and commercial challenges while competing in Kenya’s alcoholic beverages market.

The auction comes at a difficult time for the brewer, which has battled financial pressure and court disputes even as it remains one of Kenya’s most recognisable local alcohol brands.

Joseph Muraya
Joseph Muraya
With over a decade in journalism, Joseph Muraya, founder and CEO of Y News, is a respected Communications Consultant and Journalist, formerly with Capital News Kenya. He aims to revolutionize storytelling in Kenya and Africa.

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