- KRA intercepts a smartphone consignment linked to an alleged Ksh21.5 million tax loss
- Verification uncovers thousands more phones than were declared in customs entries
- High-end smartphone models were also found among the undeclared goods at Eldoret airport
The Kenya Revenue Authority (KRA) enforcement teams have seized a consignment of under-declared 53,000 units of smart phones at the Eldoret International Airport, averting a tax loss of Ksh21.5 million.
The consignment, according to a press statement, seized following an intelligence report, was part of consolidated items that include 3,000 declared units of smartphone among other items that include shoes, clothing, automotive spare parts, household goods, electronic accessories, mobile phones, and other assorted consolidated cargo.
The consignment was declared under five Customs entries. Verification established 55,607 pieces of ordinary smartphones against the 3,000 pieces declared.
In addition, 309 pieces of high-end smartphones, including Samsung Galaxy S26 Ultra, Samsung Galaxy Z Fold and Apple iPhone 17 Pro Max models, were found without any declaration.
The consignment therefore reflects both under-declaration and non-declaration of dutiable goods.
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The intelligence received indicated that the consignment contained manifested mobile phones and other high-end electronic goods. The verification exercise was therefore undertaken to establish whether all mobile phones on board had been duly declared.
The tax evasion scheme is a contravention of sections 203 of the East Africa Community Customs Act, (EACCMA) 2004 which states in part that a person who, in any matter relating to the Customs makes any entry which is false or incorrect in any particular, or in any way is knowingly concerned in any fraudulent evasion of the payment of any duty commits an offence and shall be liable on conviction to imprisonment for a term not exceeding three years or to a fine not exceeding ten thousand dollars.
KRA is actively engaged in unearthing tax evasion schemes in order to boost tax revenue compliance as well as adherence to tax laws and procedures hence ensuring fair trade is maintained within the market.
The tax collector is therefore appealing to members of the public, taxpayers and businesses with information concerning persons, companies or networks involved in the generation, sale, purchase or use of fictitious VAT invoices to come forward and share such information with the Authority.
All information received shall be kept confidential and identity of informant kept 100% anonymous.
By Fredrick Odiero
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