KRA uncovers Sh33.8 billion fake invoices in Sh4 billion VAT fraud scheme
Originally published by Kahawatungu — Read the original article →
Election process
The Kenya Revenue Authority (KRA) has uncovered a suspected Sh4 billion Value Added Tax (VAT) fraud scheme involving fictitious electronic invoices valued at Sh33.83 billion, in a major crackdown on tax evasion.
The scheme, commonly known as the “Missing Trader Scheme,” allegedly involved 72 related entities that generated thousands of electronic tax invoices without corresponding genuine business transactions between 2020 and 2025.
KRA said the entities transmitted 62,869 invoices through the electronic Tax Invoice Management System (eTIMS), with a combined value of Sh33.83 billion and corresponding VAT of Sh5.37 billion.