Out of the six suspects cleared to face prosecution over a KES 3.9 billion tax heist, only three traders were presented before the Milimani Law Courts on Thursday to face justice.
The court heard that the arraigned suspects are a small segment of traders whom the tax master has investigated over the loss of KES 25 billion in fake tax declarations.
“We have identified the businesses through which the government has lost the much-needed revenue to finance its activities,” Ms Sheila Sanga, a Deputy Commissioner at the Kenya Revenue Authority, stated at the Milimani Law Courts at the commencement of the prosecution of the three suspects allegedly involved in the tax fraud.
Ms Sanga, who led the prosecution, said, “All the masterminds of the mega tax fraud have been identified, among them KRA employees.”
She said the tax master is sparing no effort in bringing the suspects to book to face justice.
Ms Sanga and Chief Manager of Investigations Sylvester Okello presented the suspects before Magistrate Paul Mutai.
The suspects, Dorothy Gacheri Kimathi, Jefferson Wachira Nyota and Lucy Njeri Nyota, denied charges of declaring untruthful information in relation to Value Added Tax (VAT) payable from purchases they made through their companies.
Ms Kimathi was charged alongside her company, Njempta Agencies Limited.
Mr Nyota was also charged alongside his company, Jeffla Construction Limited.
The magistrate heard from the tax prosecutors that, on diverse dates between December 20, 2024, and January 20, 2025, within Nairobi, Ms Kimathi made incorrect statements by claiming purchases of goods worth KES 2,852,672 from Aiselev Enterprises Limited.
In the tax declaration, she reduced the VAT payable, thereby occasioning KRA to lose KES 456,428.
Ms Kimathi denied the offence and applied to be admitted to bail, saying, “The offence is bailable and that bond is her guaranteed constitutional right.”
Mr Nyota of Jefla Construction Limited was accused of making a false declaration showing that he purchased materials from Hadsem General Supplies Ltd for KES 3,329,145.
The VAT declaration submitted to KRA allegedly occasioned a loss of KES 532,663 in revenue.
In another charge, Mr Nyota, Lucy Njeri Nyota and Jefla are accused of committing a tax fraud which allegedly led KRA to lose KES 548,337.
The court heard that, on diverse dates between July 1 and 31, 2022, they, being directors of Jefla, which is a registered taxpayer with KRA, made an incorrect statement by claiming purchases of KES 3,427,105 from Namtek Transporters Company, which they knew to be false.
The magistrate heard that the directors reduced the VAT liability, thereby occasioning the government to lose KES 548,337.
The KRA prosecutors informed the magistrate that the Director of Public Prosecutions had cleared the prosecution of “five (5) missing traders and twelve (12) companies linked to an alleged scheme to defraud the government about KES 3.9 billion in VAT.”
The prosecution did not oppose the release of the suspects on bond, saying it was their constitutional right and the offences filed against them are bailable.
In a brief ruling, the magistrate released the suspects on cash bail of KES 150,000 and KES 200,000 respectively. Ms Kimathi was freed on a cash bail of KES 150,000, while the Nyotas were released on a bond of KES 200,000.
Mr Mutai further issued a warrant of arrest against the suspects who did not turn up in court to face prosecution.
The case will be mentioned on October 16, 2026, for further directions.
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