Alleged Invoice Fraud: ODPP Approves Charges Against Five People and 12 FirmsAlleged Invoice Fraud: ODPP Approves Charges Against Five People and 12 Firms

The case matters for honest businesses because it targets misuse of the Kenya Revenue Authority's electronic invoicing system, which is meant to protect VAT revenue. The ODPP worked jointly with the Kenya Revenue Authority (KRA), and the charges are allegations only; every suspect is presumed innocent until a court rules otherwise.

What prosecutors approved

The ODPP reviewed 70 inquiry files and approved 36 cases. Those cases involve about KSh 3.22B ($24.79M) of transactions and an alleged VAT loss of about KSh 518M ($3.99M). Six cases are prioritised for immediate prosecution, with a VAT implication of about KSh 17M ($131,000), and the ODPP said the remaining files will be registered in court in due course.

Reports put the alleged fraud at about KSh 3.9B ($30M) in total. That figure differs from the case-level totals above, so readers should treat it as a headline estimate rather than a charged amount.

What remains unclear

It was not confirmed whether any suspect has appeared in court or entered a plea, and the specific charges against each defendant were not set out. Reports also differ on the numbers charged: one described three alleged organisers and 37 people in a first batch, while the ODPP named five people and 36 cases.

Business Daily reported that investigators put fictitious invoices issued through the system between 2020 and 2025 at about KSh 42B ($323M), exposing the KRA to about KSh 4B ($30.79M) in false VAT claims. That total comes from unnamed investigators and has not been published by the ODPP, so it is unconfirmed.

The same report said investigators believe some KRA staff helped transactions go through. Their number and names have not been made public.

Revenue context

The case comes as the tax authority is under pressure. Business Daily, citing a National Treasury report, said the KRA fell KSh 58.2B ($448M) short of its target in the first quarter of the 2026/27 fiscal year.

Mwenendo earlier reported on how the housing levy flows through payslips, and as Mwenendo earlier reported, MPs voted to keep VAT on fuel at 8% for 90 more days, both signs of how much weight VAT carries in public finances.

What it means for businesses

Compliant firms should keep invoice records that match real purchases, because refund claims backed by electronic invoice data are likely to face closer checks. The court process will show how strong the evidence is, and any convictions would be for a court, not the prosecutor, to decide.