Five to face charges in Ksh519M VAT fraud

The Office of the Director of Public Prosecutions (ODPP) has approved charges against five individuals and 12 companies over an alleged tax fraud scheme involving Ksh3.9 billion in Value Added Tax (VAT).

The suspects are accused of using a network of companies to generate fictitious transactions and electronic tax invoices, which other businesses allegedly used to claim fraudulent VAT refunds or reduce their tax liabilities without making genuine purchases.

The decision to prosecute follows joint investigations by the ODPP and the Kenya Revenue Authority (KRA), which involved a review of 70 inquiry files.

The ODPP has approved prosecution in 36 cases involving transactions valued at approximately Ksh3.9 billion, with an alleged VAT loss of about Ksh519 million.

Six cases have been prioritised for immediate prosecution, involving an estimated Ksh17 million in VAT.

The five individuals identified 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 registering 70 companies used to execute the scheme.

The cases involve several companies, including Renova Limited, Larigr Enterprises, Njemtar Agencies, Jeflar Construction Company, Namtek Transporters Company Limited, Jawari General Supplies and Tekaza Investment & General Supplies.

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