Sh3.9billion tax fraud scandal: DPP targets five suspects, 12 firms
Five individuals and 12 companies face prosecution over alleged fictitious transactions used to evade taxes and expose the Government to Sh519 million in lost VAT revenue.
The Office of the Director of Public Prosecutions (ODPP) has approved prosecution in 36 cases linked to an alleged Sh3.9 billion tax fraud scheme involving fictitious transactions and electronic invoices used to claim fraudulent Value Added Tax (VAT) refunds or evade tax.
The investigations, conducted jointly by the Office of the Director of Public Prosecutions (ODPP) and the Kenya Revenue Authority (KRA), uncovered an alleged network of companies that generated electronic tax invoices without genuine purchases, exposing public revenue to an estimated Sh519 million loss.
The DPP approved the prosecutions following a review of 70 inquiry files, with six cases involving an estimated Sh17 million in VAT liabilities prioritised for immediate prosecution.
The five individuals named in the investigations are Henry Ateka Nyabwari, James Ojiambo Nyengenye, Amisi Zamda, Frank Nyabwari and Hesbon Onyoni.
According to the ODPP, the suspects allegedly participated in registering 70 companies that were used to execute the scheme.
The companies are suspected of operating as “missing traders”, generating fictitious transactions and electronic invoices that other businesses allegedly used to claim VAT refunds unlawfully or reduce their tax obligations despite making no genuine purchases.
Firms linked to the investigations include Renova Limited, Larigr Enterprises, Njemtar Agencies, Jeflar Construction Company, Namtek Transporters Company Limited, Jawari General Supplies and Tekaza Investment & General Supplies.
In a statement issued on Thursday, October 15, 2026 the ODPP said the remaining files would be registered in court in due course, paving the way for additional charges against the suspects involved.
The alleged scheme raises questions about the integrity of electronic invoicing systems and the effectiveness of tax compliance controls used to protect government revenue.
