The Kenya Revenue Authority said 72 companies generated over 62,000 electronic invoices worth Sh33.83 billion through the electronic Tax Invoice Management System between 2020 and 2025. Businesses that claimed to have purchased goods and services from these companies sought Sh3.996 billion in input VAT deductions, while the invoices themselves carried Sh5.37 billion in VAT.
Investigations revealed that several of the companies had not filed tax returns, lacked genuine business operations or could not be located at their registered addresses. The authority has referred 57 investigation files to the Office of the Director of Public Prosecutions, which has approved prosecution against 42 individuals, companies and company directors. Six suspects have been arrested so far.