DPP approves charges in alleged Sh518m VAT fraud scheme
Five people and 12 companies are accused of using fake electronic invoices to claim refunds and cut tax bills.
Based on reporting by Kenyans.co.ke.
Office buildings on Kenyatta Avenue, Nairobi. File photo, 2025. Photo: DesiBoy101 / Wikimedia Commons, CC BY 4.0
The Director of Public Prosecutions has approved charges against five people and 12 companies over an alleged VAT fraud scheme that investigators estimate cost the government Sh518 million.
Investigators allege that a network of so-called missing traders issued fake electronic invoices for sales that never happened. Other businesses then allegedly used the invoices to claim VAT refunds or reduce the tax they owed.
The Office of the DPP and the Kenya Revenue Authority approved prosecution in 36 cases after reviewing 70 inquiry files. The cases involve transactions worth about Sh3.22 billion. Six cases, with an estimated VAT effect of about Sh17 million, were picked for immediate prosecution, and the accused were due in court on 15 October. The rest will be filed later.
The names of the accused were not published. The allegations have not been proven in court.
