The Director of Public Prosecutions (DPP) has approved charges against five individuals and 12 companies linked to an alleged KSh 3.9 billion Value Added Tax (VAT) fraud scheme targeting government revenue.
In a statement dated October 15, 2026, the Office of the Director of Public Prosecutions (ODPP) said the decision followed joint investigations with the Kenya Revenue Authority (KRA) and a comprehensive review of 70 inquiry files.
Investigators established 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 taken place.
The five individuals named in the investigations are Henry Ateka Nyabwari, James Ojiambo Nyengeneye, Amisi Zamda, Frank Nyabwari and Hesbon Onyonyi.
According to the ODPP, the individuals are alleged to have been involved in registering 70 companies that were instrumental in executing the scheme.
Following a review of the inquiry files, the DPP approved prosecution in 36 cases involving transactions valued at approximately KSh 3.22 billion.
The cases are associated with an estimated VAT loss of KSh 518 million. Of the 36 cases, six have been prioritised for immediate prosecution, with a VAT implication of approximately KSh 17 million.
Companies mentioned 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 ODPP said the remaining files would be registered in court in due course, with the suspects involved to be charged accordingly.
The approval of charges marks a step in the prosecution of the alleged tax fraud network, with investigators focusing on the use of fictitious invoices to facilitate improper VAT claims and reduce tax obligations.
The ODPP reaffirmed its commitment to combating economic and financial crimes, including sophisticated tax fraud schemes, and protecting public revenue.
