The Director of Public Prosecutions (DPP) has approved charges against five individuals and 12 companies linked to an alleged Sh3.9 billion Value Added Tax (VAT) fraud scheme involving fictitious transactions and fraudulent electronic tax invoices.
In a press statement dated Thursday, October 15, 2026, the Office of the Director of Public Prosecutions (ODPP) said the five individuals identified in the investigations are Henry Ateka Nyabwari, James Ojiambo Nyengenye, Amisi Zamda, Frank Nyabwari and Hesbon Onyonyi. They are alleged to have been involved in registering 70 companies that were instrumental in executing the scheme.
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 invoices were subsequently used by other businesses to unlawfully claim VAT refunds or reduce their tax liabilities despite no genuine purchases having been made.
The alleged scheme involved transactions valued at approximately Sh3.22 billion, resulting in an estimated VAT loss of about Sh518 million. The ODPP said the decision followed joint investigations and a comprehensive review of 70 inquiry files conducted in collaboration with the Kenya Revenue Authority (KRA). Prosecution has been approved in 36 cases, with six prioritised for immediate action. The six cases have a VAT implication of approximately Sh17 million.
Companies named in connection with 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, after which the suspects will be charged accordingly.
