The Director of Public Prosecutions (DPP) has approved charges against five (5) individuals and twelve (12) companies linked to an alleged scheme to defraud the Government of approximately KSh3.9 billion in Value Added Tax (VAT).

The decision to charge follows joint investigations and a comprehensive review of seventy (70) inquiry files conducted by the Office of the Director of Public Prosecutions (ODPP) in collaboration with the Kenya Revenue Authority (KRA).

Investigations revealed that a network of companies, commonly referred to as “missing traders,” was used to generate fictitious transactions and electronic tax invoices. These fraudulent invoices were subsequently used by other businesses to unlawfully claim VAT refunds or reduce their tax liability, despite no genuine purchases having been made.

The five (5) individuals identified in the investigations are: Henry Ateka Nyabwari, James Ojiambo Nyengenye, Amisi Zamda, Frank Nyabwari and Hesbon Onyoni. They are alleged to have been involved in registering seventy (70) companies that were instrumental in executing the scheme.

Upon review of the files, the DPP approved prosecution in thirty-six (36) cases involving transactions valued at approximately KSh3.22 billion, resulting in an alleged VAT loss of about KSh518 million. Of these, six (6) have been prioritized for immediate prosecution, with a VAT implication of about Kshs. 17 million.

The cases involve various companies, including: Renova Limited, Larigi Enterprises, Njemtar Agencies, Jeflar Construction Company, Namtek Transporters Company Limited, Jawari General Supplies and Tekaza Investment & General Supplies.

“The remaining files will be registered in court in due course, and the suspects involved therein will be charged accordingly,” the ODPP says. “The ODPP reaffirms its unwavering commitment to combating economic and financial crimes, including sophisticated tax fraud schemes, and to protecting public revenue.”