Trio stage VAT fraud through Sh42bn fake invoices

Forensic investigations have unearthed how three fraudsters engineered a massive tax fraud through fictitious electronic invoices worth about Sh42 billion over five years, exposing the Kenya Revenue Authority (KRA) to about Sh4 billion in fake value-added tax (VAT) claims.

Investigators told the Business Daily that the trio created accounts on KRA’s electronic business invoicing platform, eTIMS, through which 62,869 fake invoices were generated. They then used the dud invoices to claim VAT refunds from the taxman between 2020 and 2025.