The Director of Public Prosecutions (DPP) has approved charges against five individuals and 12 companies over an alleged tax fraud scheme involving approximately KSh3.9 billion in Value Added Tax (VAT).
The Office of the Director of Public Prosecutions (ODPP) said the decision followed joint investigations with the Kenya Revenue Authority (KRA) and a review of 70 inquiry files.
Investigators established that a network of companies, known as “missing traders”, allegedly generated fictitious transactions and electronic tax invoices. Other businesses reportedly used the invoices to claim fraudulent VAT refunds or reduce their tax liabilities without making genuine purchases.
The five individuals identified are Henry Ateka Nyabwari, James Ojiambo Nyengenye, Amisi Zamda, Frank Nyabwari, and Hesbon Onyoni. They are alleged to have participated in registering 70 companies linked to the scheme.
Following the review, the DPP approved prosecution in 36 cases involving transactions worth approximately KSh3.22 billion, with an alleged VAT loss of about KSh518 million.
Six cases have been prioritised for immediate prosecution, involving approximately KSh17 million in VAT. Companies linked to the cases include Renova Limited, Larigi Enterprises, Njemtar Agencies, and Jeflar Construction Company.
The ODPP said the remaining files would be registered in court in due course, reaffirming its commitment to tackling financial crimes and protecting public revenue.