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KRA intercepts contraband cigarettes worth Sh281 million

The Kenya Revenue Authority (KRA) has intercepted a large consignment of contraband cigarettes valued at Sh 281.1 million at the Port of Mombasa, in a major operation targeting illicit trade at Kenya’s border ports.

Confirming the interception, KRA said the seizure involved over 9.3 million sticks of cigarettes concealed in a 40-foot container that was being illegally imported through the port.

“The interception followed actionable intelligence that led to the identification of a suspicious container at the Port of Mombasa,” KRA said in a statement.

Acting on the intelligence, the Authority convened a multi-agency verification team to examine the cargo. Given the nature of the goods, officers conducted a 100 per cent physical examination to ensure compliance with tax, standards, and enforcement regulations.

“Due to the high risk associated with the consignment, a full physical examination was undertaken to establish compliance with applicable tax, quality, and regulatory requirements,” the Authority noted.

The operation brought together officers from the Kenya Revenue Authority, Port Police, Kenya Bureau of Standards (KEBS), Anti-Counterfeit Authority (ACA), Port Health Services, and the Kenya Ports Authority (KPA).

The joint inspection confirmed 937 cartons containing 9,370,000 sticks of cigarettes. Although the cartons were labeled ‘Made in Sudan’, the country of consignment was listed as Cambodia, with the cargo routed through Singapore and Kenya, and declared as being en route to South Sudan.

“The inconsistencies in the country of origin, routing, and labeling of the cigarettes raised serious concerns of declaration and attempted tax evasion,” KRA said.

According to the Authority, the total taxes payable on the seized goods amount to Sh 83.39 million, comprising Sh 38.42 million in excise duty and Sh 44.98 million in value-added tax (VAT).

“This interception underscores KRA’s unwavering commitment to protecting national revenue, legitimate traders, and consumers from the effects of illicit trade,” the Authority said.

KRA reiterated that it remains vigilant in strengthening border controls and working closely with other agencies to ensure fair market competition.

“We will continue to leverage intelligence-led operations and inter-agency collaboration to disrupt illegal trade networks and safeguard the country’s economic interests,” the statement added.

Investigations into the matter are ongoing, and enforcement action will be taken against those found culpable.

By Chari Suche

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