Two Private Company Directors Charged With Sh33.8 Billion VAT Fraud

Two directors of private companies have been charged with tax fraud over alleged irregular Value-Added Tax (VAT) claims that resulted in a cumulative loss of Sh 1,537,428 to the Kenya Revenue Authority (KRA). Jefferson Wachira Gachango and Dorothy Gacheri Kimathi appeared before Milimani Principal Magistrate P.K. Mutai, where they faced charges of making incorrect tax statements to reduce their VAT liabilities. The court heard that Wachira, a director of Jefla Construction Company, allegedly made incorrect statements in July 2022 by claiming purchases worth Sh 3,329,145 from Adsem General Supplies, resulting in a VAT loss of Sh 532,663. He faced a second count alleging that he claimed purchases worth Sh 3,427,105 from Namtek Transporters, which he allegedly knew to be incorrect. The claim is said to have reduced his VAT liability and occasioned a further loss of Sh 548,337. Kimathi was separately charged with allegedly making an incorrect statement by claiming purchases worth Sh 2,852,672 from Aislve Enterprises, resulting in a VAT loss of Sh 456,428. Appearing before Magistrate Paul Mutai, Wachira was released on a bond of Sh 600,000 or an alternative cash bail of Sh 400,000, while Kimathi was granted a bond of Sh 300,000 or an alternative cash bail of Sh 150,000. Meanwhile, the court issued warrants of arrest against Jane Lucy Njeri, Joram Kamau and Amisi Zamda after they failed to appear for their scheduled court appearance. The three are directors associated with Jefla Construction Company, Renova Limited, and Tekaza Investment and General Suppliers, respectively, and are expected to face tax fraud-related charges. The court also directed Henry Ateka Nyabwari, the sixth suspect, to appear on Friday for plea-taking.