The Kenya Revenue Authority (KRA) has issued a stern warning to Kenyan businesses regarding the risks of missing-trader fraud, cautioning against engaging with non-credible suppliers following a recent High Court ruling. The KRA emphasized that such schemes undermine fair taxation and can lead to inflated costs and other fraudulent practices.

• A High Court ruling upheld a tax assessment of Ksh773 million against a construction company involved in a missing-trader scheme.
• KRA Commissioner General Humphrey Wattanga stated the goal is to facilitate compliance and protect businesses from fraudulent entities.
• The ruling reaffirmed that invoices alone are insufficient proof when the KRA raises credible doubts, strengthening the legal obligation for taxpayers to maintain accurate records.