The Director of Public Prosecutions (DPP) has approved charges against five individuals and 12 companies over an alleged Sh3.9 billion tax fraud scheme involving fake business transactions and electronic invoices used to claim Value Added Tax (VAT) refunds unlawfully or lower tax bills.
The case centres on a network of companies accused of creating false transactions and electronic tax invoices, which other businesses allegedly used to avoid paying the correct taxes. The Office of the Director of Public Prosecutions (ODPP) said the scheme involved the registration of 70 companies, with five individuals now facing possible prosecution.
In a statement issued on Thursday, October 15, 2026, the ODPP identified the suspects as Henry Ateka Nyabwari, James Ojiambo Nyengenye, Amisi Zamda, Frank Nyabwari and Hesbon Onyoni.
Investigations found that some of the companies operated as what are commonly known as “missing traders”. These businesses allegedly generated fake transactions and electronic tax invoices that were then used by other firms to seek VAT refunds they were not entitled to or reduce their tax bills without making genuine purchases.
The DPP's decision to approve charges followed joint investigations and a review of 70 inquiry files carried out in partnership with the Kenya Revenue Authority (KRA).
Following the review, the ODPP approved prosecution in 36 cases involving transactions worth about Sh3.22 billion. The cases are linked to an estimated VAT loss of approximately Sh518 million.
“Of these, six (6) have been prioritized for immediate prosecution, with a VAT implication of about Sh. 17 million,” the statement said.
The six cases selected for immediate prosecution involve several companies, including Renova Limited, Larigi Enterprises, Njemtar Agencies, Jeflar Construction Company, Namtek Transporters Company Limited, Jawari General Supplies and Tekaza Investment & Supplies.
The ODPP said the remaining files would be registered in court in due course, after which the suspects involved would be charged accordingly.
The alleged scheme points to the use of false invoices to support tax claims and reduce tax obligations, potentially denying the government revenue meant to fund public services.
The prosecution decision follows the review of dozens of inquiry files, with the DPP moving to pursue cases linked to transactions worth billions of shillings and alleged losses in VAT revenue.
The ODPP reaffirmed its commitment to tackling economic and financial crimes, including complex tax fraud schemes, and safeguarding public revenue.