The Director of Public Prosecutions (DPP) has approved charges against five individuals and 12 companies over an alleged scheme to defraud the government of approximately Sh3.9 billion in Value Added Tax (VAT).
The decision follows joint investigations by the Office of the Director of Public Prosecutions (ODPP) and the Kenya Revenue Authority (KRA), alongside a comprehensive review of 70 inquiry files.
Investigators established that a network of companies, commonly referred to as “missing traders,” allegedly generated fictitious transactions and electronic tax invoices that were used to facilitate fraudulent VAT claims.
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, according to the investigations.
The five individuals named 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 the registration of 70 companies that investigators believe were instrumental in executing the scheme.
Following its review of the inquiry files, the DPP approved prosecution in 36 cases involving transactions valued at approximately Sh3.22 billion, with an alleged VAT loss of about Sh518 million.
Six cases have been prioritised for immediate prosecution, involving an estimated VAT implication of Sh17 million.
The companies linked to 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 will be registered in court in due course, with the suspects involved expected to face charges as the prosecution process progresses.
The ODPP reaffirmed its commitment to combating economic and financial crimes, including sophisticated tax fraud schemes, and protecting public revenue.
The allegations are yet to be determined by the courts, and the accused persons are presumed innocent unless proven guilty.
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