Kenya Revenue Authority (KRA) has seized a consignment of smartphones and other items in a tax evasion racket that would have cost the country more than Ksh16 million in revenue.
The goods, shipped on September 18 on a cargo aircraft, were meant for one company but cleared by another. Fake documents sparked alerts during an intelligence-led operation, and officers noticed and moved to inspect the cargo.
KRA reported the consignment was disguising as consolidated cargo but contained at least 5,000 smartphones that cost Ksh6.4 million, shoes, clothing, automobile spare parts, domestic use articles, and electronic accessories.
The investigations revealed the commodities had been under- or mis-declared to avoid paying the correct duties.
The practice is illegal under Section 203 of the East African Community Customs Management Act, 2004, which attracts a fine of up to Ksh1.3 million, three years’ imprisonment, or both.
“KRA is committed to unearthing tax evasion rings to improve revenue compliance and protect fair trade in the market,” the agency said in a statement.
The raid is one of several large operations this month. Earlier, KRA together with the Directorate of Criminal Investigations (DCI) and National Police Service (NPS) seized illicit cigarettes valued at Ksh29.2 million in Kirinyaga, which would have cost the government approximately Ksh19 million in taxes.
Independent investigations in Uasin Gishu and Mombasa uncovered more bogus transactions, such as a tax evasion scheme involving irregular clearance of rice containers that raked in Ksh123 million.
