Kenya Association of Manufacturers (KAM) has offered to mediate between     Kenya Revenue Authority (KRA) and troubled beer maker Keroche over tax impasse.

This follows a meeting between the association and Keroche breweries management led by chief executive Tabitha Karanja on Monday, in an effort to save over 250 employees at the Naivasha based brewer from an impending retrenchment.

"From the meeting, it was agreed that Keroche Breweries will activate their membership and submit the details and documentation of the issues raised, to enable KAM to engage Kenya Revenue Authority  on the same," CEO Phyllis Wakiaga said in a statement. 

Keroche breweries has been closed since last month over  Sh322 million tax arrears accrued from February last year.

According to firm, efforts to seek a favourable repayment period to clear the arrears, based on its cashflow, has proved futile.

The recent closure of the firm saw the taxman issue notices to 36 financial institutions ,a move the managementnt says completely collapsed all its business operations since it could neither produce, sell nor access any financing from any of the banks to assist in settling the arrears.

Last Friday, the firm CEO appealed to the Head of State to intervene  while asking that the company be  granted a 12-month grace period while warning that continued closure of the firm will mean they will have to lay off at least 250 people since the company had exhausted its finances.