Kenyan court issues warrants in Sh3.9bn VAT fraud case

A court in Nairobi, Kenya, has issued arrest warrants for suspects who failed to appear in court in a case involving alleged value-added tax fraud worth Sh3.9 billion. Three businesspeople have already been charged with filing false VAT returns, Nation Kenya reports.

Charges against three businesspeople

Dorothy Gacheri Kimati, Jefferson Wachira Nyota and Lucy Njeri Nyota pleaded not guilty to charges related to false VAT declarations. Kimati is charged alongside Njempta Agencies Limited, while Jefferson Nyota is charged alongside Jeffla Construction Limited.

According to the prosecution, between December 20, 2024, and January 20, 2025, Kimati allegedly declared the purchase of goods worth Sh2,852,672 from Aiselev Enterprises Limited. Prosecutors say this reduced her VAT liability and resulted in a loss of Sh456,428 in revenue for the Kenya Revenue Authority.

Jefferson Nyota and Jeffla Construction Limited are also accused of allegedly falsely declaring purchases of materials worth Sh3,329,145 from Hadsem General Supplies Limited. According to the prosecution, this episode reduced tax revenue by Sh532,663.

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Other episodes and warrants

In a separate episode, Jefferson Nyota, Lucy Njeri Nyota and Jeffla Construction Limited are accused of taking part in a scheme that, according to the prosecution, caused losses of Sh548,337 to the state. Investigators believe that in July 2022, as company directors, they filed a false declaration on the purchase of goods worth Sh3,427,105 from Namtek Transporters Company.

Kenya Revenue Authority Deputy Commissioner Sheila Sanga told the court that investigators had identified businesses through which the state may have lost tax revenue. According to her, employees of the tax authority may also be among the alleged organizers of the scheme. Prosecutors said that the Director of Public Prosecutions had approved the prosecution of another five businesspeople and 12 companies linked to the alleged scheme involving about Sh3.9 billion in VAT.

Judge Paul Mutai released Kimati on cash bail of Sh150,000, and Jefferson and Lucy Nyota on bail of Sh200,000 each. The case is scheduled to be mentioned in court on October 16, 2026, for further directions.