Kenya Revenue Authority says 72 firms issued fake eTIMS invoices worth KSh 33.83 billion

The Kenya Revenue Authority (KRA) said on 15 October 2026 that 72 companies issued 62,869 fake invoices worth KSh 33.83 billion through its eTIMS electronic invoicing system between 2020 and 2025, Nairobi News and Capital FM reported. The invoices carried VAT of KSh 5.37 billion.

KRA said taxpayers who reported buying from the companies declared purchases of KSh 25.07 billion and claimed KSh 3.996 billion in input VAT. KRA called the arrangement a "Missing Trader Scheme".

KRA said several of the companies had not filed VAT and income tax returns, had no PAYE obligations or were not traceable at their registered premises. Digital forensics linked the companies to electronic devices, phone numbers and people suspected of generating or sending the invoices.

KRA said the Office of the Director of Public Prosecutions (ODPP) has approved prosecution of 42 individuals, companies and company directors. Six suspects have been arrested and are expected to face charges including tax fraud and aiding another person to commit a tax offence.

In a separate statement on 15 October, the ODPP said it had approved charges against five individuals and 12 companies over an alleged scheme to defraud the government of about KSh 3.9 billion in VAT. Two traders and their companies have been charged with tax fraud at Milimani Law Courts in Nairobi and denied the charges, The Standard reported.

KRA said some records pointed to possible involvement of KRA staff accounts, which are now subject to internal and legal processes.

The authority said it is disallowing input VAT claims that are not supported, recovering the tax owed, reversing the fraudulent eTIMS transmissions and disabling the eTIMS devices linked to the scheme. It said it is using data analytics, digital forensics, financial investigations and cooperation with other agencies.

KRA warned that businesses that knowingly buy or use fictitious invoices to claim input VAT face criminal and civil penalties. It asked taxpayers who benefited from the scheme, or were victims of it, to come forward and regularise their tax affairs. Information can be reported through the KRA whistleblowing portal at iwhistle.kra.go.ke, and KRA gave 020 4 999999 and 0711 099 999 as numbers to call for guidance. It said whistleblowers' identities will be kept anonymous and their reports confidential.