The Director of Public Prosecutions (DPP) has charged two company directors with tax-related fraud over allegations that they claimed false business purchases to reduce their Value Added Tax (VAT) obligations, resulting in a combined tax loss of KSh1.53 million.
Jefferson Wachira Gachango and Dorothy Gacheri Kimathi appeared before Milimani Principal Magistrate P.K. Mutai, where they faced charges linked to allegedly inaccurate purchase declarations made to the Kenya Revenue Authority (KRA).
Court documents indicate that Wachira, a director of Jefla Construction Company, allegedly declared purchases worth KSh3.33 million from Adsem General Supplies in July 2022, despite knowing the information was incorrect. Prosecutors said the declaration reduced his company’s VAT liability and caused the tax authority a loss of KSh532,663.
Wachira faced a second count over alleged purchases worth KSh3.43 million from Namtek Transporters. The prosecution accused him of knowingly submitting incorrect information to lower his VAT liability, resulting in a further loss of KSh548,337.
Kimathi was also charged with tax fraud over alleged purchases worth KSh2.85 million from Aislve Enterprises. Prosecutors told the court that she knowingly made an incorrect declaration, reducing her VAT liability and causing a loss of KSh456,428.
The three claims account for a combined alleged VAT loss of KSh1,537,428. The court granted Wachira a bond of KSh600,000 or an alternative cash bail of KSh400,000. Kimathi was released on a bond of KSh300,000 or an alternative cash bail of KSh150,000.
Meanwhile, Magistrate Mutai issued arrest warrants for Jane Lucy Njeri, Joram Kamau and Amisi Zamda after they failed to appear in court. The three are expected to face charges relating to tax fraud and aiding the commission of tax fraud. They are associated with Jefla Construction Company, Renova Limited, and Tekaza Investment and General Suppliers, respectively.
The DPP has approved six charges involving tax fraud and aiding the commission of tax fraud in the wider case. The court also directed the sixth suspect, Henry Ateka Nyabwari, to appear on Friday for plea-taking.
The prosecution was handled by Annette Wangia, Virginia Kariuki, Kevin Nyaga and Charlotte Elly. The allegations are yet to be determined by the court, and the accused persons are presumed innocent unless proven guilty.