Five individuals and 12 companies are facing prosecution over an alleged Value Added Tax (VAT) fraud scheme estimated to have cost the government billions of shillings.
The Office of the Director of Public Prosecutions (ODPP) announced on Thursday, October 15, 2026, that the Director of Public Prosecutions had approved charges following investigations conducted jointly with the Kenya Revenue Authority (KRA).
The decision followed a review of 70 inquiry files linked to suspected fraudulent VAT claims involving approximately KSh3.9 billion.
According to the ODPP, investigators uncovered a network of companies allegedly operating as “missing traders” to generate fictitious business transactions and electronic tax invoices.
The invoices were allegedly used by other businesses to claim VAT refunds or reduce their tax liabilities despite not having made genuine purchases.
The five individuals identified in the investigations are Henry Ateka Nyabwari, James Ojiambo Nyengeneye, Amisi Zamda, Frank Nyabwari and Hesbon Onyonyi.
Prosecutors allege that the individuals were involved in registering 70 companies linked to the scheme.
The ODPP said the DPP had approved prosecution in 36 cases involving transactions valued at approximately KSh3.22 billion, with the estimated VAT loss standing at KSh518 million.
Six cases have been prioritised for immediate prosecution, with their tax implications estimated at KSh17 million.
Among the companies named in the cases are Renova Limited, Larigi Enterprises, Njemtar Agencies, Jeflar Construction Company, Namtek Transporters Company Limited, Jawari General Supplies and Tekaza Investment & General Supplies.
The ODPP said the remaining inquiry files would be presented in court in due course, with suspects linked to those cases expected to face charges where appropriate.
The alleged scheme has raised concerns over the potential misuse of electronic tax invoices to facilitate fraudulent refund claims and reduce tax obligations.
The ODPP said it remained committed to prosecuting economic and financial crimes and safeguarding public revenue.
The allegations have yet to be proven in court, and the individuals and companies involved are entitled to due process.
