- The Director of Public Prosecutions approved charges against five individuals and 12 companies over an alleged KSh 3.9 billion VAT fraud scheme
- Investigators found a network of 'missing traders' used to generate fictitious transactions and electronic tax invoices to unlawfully claim VAT refunds
- The DPP approved prosecution in 36 cases worth KSh 3.22 billion, with six cases fast-tracked for immediate prosecution
The Director of Public Prosecutions (DPP) has approved charges against five individuals and twelve companies accused of orchestrating a scheme to defraud the government of approximately KSh 3.9 billion in Value Added Tax (VAT).
Source: Twitter
The Office of the Director of Public Prosecutions (ODPP) announced the decision on October 15, 2026, following a joint review of 70 inquiry files conducted together with the Kenya Revenue Authority (KRA).
How the VAT Fraud Scheme Worked
Investigators established that a network of companies, commonly described as "missing traders," was used to generate fictitious transactions and electronic tax invoices.
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Other businesses then used these fraudulent invoices to claim VAT refunds or reduce their tax obligations, despite no genuine commercial activity having taken place.
The five individuals named in connection with the scheme are Henry Ateka Nyabwari, James Ojiambo Nyengenye, Amisi Zamda, Frank Nyabwari, and Hesbon Onyonyi.
They are alleged to have registered the 70 companies used to carry out the fraud.
Charges Approved in 36 Cases
Following its review, the DPP approved prosecution in 36 cases involving transactions valued at approximately KSh 3.22 billion, with an alleged VAT loss of about KSh 518 million.
Six of those cases have been prioritised for immediate prosecution, covering a VAT implication of roughly KSh 17 million.
Companies cited in the cases include Renova Limited, Larigi Enterprises, Njemtar Agencies, Jeflar Construction Company, Namtek Transporters Company Limited, Jawari General Supplies, and Tekaza Investment & General Supplies.
The remaining files are expected to be registered in court in due course, with the suspects involved to be charged accordingly.
The ODPP stated it remains committed to pursuing economic and financial crimes, including sophisticated tax fraud schemes, and to safeguarding public revenue.
Source: TUKO.co.ke
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