The Director of Public Prosecutions (DPP) has approved criminal charges against five individuals and 12 companies over an alleged tax fraud scheme involving approximately KSh3.9 billion in Value Added Tax (VAT).
The decision follows joint investigations by the Office of the Director of Public Prosecutions (ODPP) and the Kenya Revenue Authority (KRA), alongside a review of 70 inquiry files relating to suspected fraudulent tax transactions.
According to the prosecution findings, the alleged scheme involved the use of companies described as “missing traders” to generate fictitious business transactions and electronic tax invoices that were later used to claim VAT refunds or inflate business expenses.
Investigators said the invoices were allegedly generated despite no genuine goods or services being exchanged, allowing participating businesses to claim tax benefits they were not entitled to or reduce their overall tax liabilities.
The ODPP identified five individuals alleged to have played central roles in registering companies used in the scheme. They are Henry Ateka Nyabwari, James Ojiambo Nyengenye, Amisi Zamda, Frank Nyabwari and Hesbon Onyoni.
Several businesses were also named in the inquiries, including Renova Limited, Larigi Enterprises, Njemtar Agencies, Jeflar Construction Company, Namtek Transporters Company Limited, Jawari General Supplies and Tekaza Investment & General Supplies.
The prosecution decision covers 12 companies, although the inquiry reportedly examined 70 files involving a wider network of companies suspected of facilitating the alleged fraud.
The ODPP said 36 cases valued at approximately KSh3.22 billion had been approved for prosecution following the review, while the direct VAT loss identified stood at KSh518 million.
Of the cases approved, six have been prioritised for immediate filing in court, with an initial estimated VAT loss of KSh17 million. The remaining cases are expected to be registered in court sequentially.
The figures highlight the distinction between the estimated overall value of the alleged scheme, the value of cases approved for prosecution and the direct VAT loss identified by investigators.
The ODPP reiterated its commitment to working with revenue enforcement agencies to address complex economic crimes and protect public revenue.
