- Investigations revealed that a network of companies, commonly referred to as “missing traders”, was allegedly used to generate fictitious transactions and electronic tax invoices.
The Director of Public Prosecutions (DPP) has approved charges against five individuals and twelve companies linked to an alleged Value Added Tax (VAT) fraud scheme involving approximately Ksh.3.9 billion.
In a press statement on October 15, 2026, the Office of the Director of Public Prosecutions (ODPP) said the decision followed joint investigations and a comprehensive review of 70 inquiry files conducted in collaboration with the Kenya Revenue Authority (KRA).
Investigations revealed that a network of companies, commonly referred to as “missing traders”, was allegedly used to generate fictitious transactions and electronic tax invoices.
Other businesses then used the fraudulent invoices to unlawfully claim VAT refunds or reduce their tax liability, despite no genuine purchases being made.
The five individuals identified in the investigations are Henry Ateka Nyabwari, James Ojiambo Nyengenye, Amisi Zamda, Frank Nyabwari and Hesbon Onyoni.
The suspects are alleged to have been involved in registering 70 companies that were instrumental in executing the scheme.
According to the ODPP, a review of the files resulted in the approval of prosecution in 36 cases involving transactions valued at approximately Ksh.3.22 billion, leading to an alleged VAT loss of about Ksh.518 million.
Of the 36 cases, authorities have prioritised six for immediate prosecution, involving an alleged VAT loss of about Ksh.17 million.
The cases involve several companies, including Renova Limited, Larigi Enterprises, Njemtar Agencies, Jeflar Construction Company, Namket Transporters Company Limited, Jawari General Supplies and Tekaza Investment and General Supplies.
The ODPP said the remaining files would be registered in court in due course, with the suspects expected to be charged accordingly.
The prosecution agency reaffirmed its commitment to combating economic and financial crimes, including sophisticated tax fraud schemes, and protecting public revenue.