The Kenya Revenue Authority (KRA) has seized 55,607 under-declared smartphones at Eldoret International Airport, averting a potential tax loss of Sh21.5 million. According to KRA, the seizure was made possible by intelligence indicating that a consignment declared as consolidated cargo contained undeclared mobile phones and other high-value electronic goods. The cargo was comprised of various items, including smartphones, shoes, clothing, and automotive spare parts.
A verification exercise established that the consignment contained 55,607 ordinary smartphones, against the 3,000 units declared in the customs documents. The exercise also uncovered 309 undeclared high-end smartphones, including Samsung Galaxy S26 Ultra, Samsung Galaxy Z Fold, and Apple iPhone 17 Pro Max models. The findings constituted both under-declaration and non-declaration of dutiable goods, resulting in an attempted loss of government revenue.
KRA said the offense contravenes Section 203 of the East African Community Customs Management Act (EACCMA), 2004, which provides penalties for making false or incorrect customs entries or knowingly evading payment of duty. Under the provision, a person convicted of the offense is liable to imprisonment for a term not exceeding three years or a fine of up to 10,000 US dollars.
The Authority said it was intensifying enforcement measures to detect and disrupt tax evasion schemes as part of efforts to enhance tax compliance and promote fair trade. KRA enforcement officers carried out the seizure at Eldoret International Airport.
KRA has urged members of the public, taxpayers, and businesses with information on individuals, companies, or networks involved in tax fraud to report the cases through its whistle-blowing channels. The Authority said information provided through the channels would be treated confidentially and the identities of informants kept anonymous.
The seizure of the under-declared smartphones is part of KRA's efforts to prevent tax evasion and ensure compliance with customs regulations. The Authority has been working to enhance its enforcement measures to detect and disrupt tax evasion schemes.
The KRA's efforts to prevent tax evasion and promote fair trade are ongoing, with the Authority working to ensure that all businesses and individuals comply with customs regulations. The seizure of the under-declared smartphones is a significant achievement in this effort, and KRA has reiterated its commitment to preventing tax evasion.
Key points
- The Kenya Revenue Authority seized 55,607 under-declared smartphones at Eldoret International Airport.
- The seizure averted a potential tax loss of Sh21.5 million.
- KRA is intensifying enforcement measures to detect and disrupt tax evasion schemes.
