The DPP has approved prosecutions linked to an alleged VAT invoice fraud scheme.
The DPP has authorised prosecutions after investigators reviewed 70 files linked to an alleged KSh3.9 billion scheme.
The Director of Public Prosecutions has approved VAT fraud charges against five individuals and 12 companies. The decision follows investigations into an alleged KSh3.9 billion scheme involving fictitious transactions and electronic tax invoices.
The Office of the Director of Public Prosecutions (ODPP) announced the decision on October 15. It follows joint investigations with the Kenya Revenue Authority (KRA) and a review of 70 inquiry files.
VAT fraud charges target alleged invoice scheme
According to the ODPP, the companies allegedly generated invoices without genuine purchases taking place. Other businesses then allegedly used those invoices to claim VAT refunds or reduce their tax liabilities.
The ODPP described the companies as “missing traders” within the suspected network. It also alleged that the five individuals helped register 70 companies instrumental in carrying out the scheme.
Although investigators examined a wider network, the DPP has approved charges against 12 companies and five individuals. These remain allegations, rather than findings of guilt.
Six cases prioritised for immediate prosecution
The prosecution approvals cover 36 cases involving transactions worth approximately KSh3.22 billion. Within those cases, the ODPP puts the alleged VAT loss at KSh518 million.
Of the approved cases, six will take priority for immediate prosecution. Those six account for an alleged VAT implication of KSh17 million.
Meanwhile, the ODPP said it would register the remaining files in court in due course. The agency also pledged to pursue complex economic and financial crimes as part of efforts to protect public revenue.
