Detectives and Kenya Revenue Authority (KRA) officers are investigating a tax evasion syndicate involving Sh100million worth of goods seized at a warehouse in Ruiru on Friday.
The consignment, mostly electronics and tyres had been declared for export to South Sudan, but the officers believe it found its way into a warehouse in Ruiru to be sold locally, in a scheme to evade taxes.
KRA Chief Investigating Officer Mutembei Nyaga said the consignment which was in five containers was estimated to be worth between Sh80 million to Sh100 million adding that investigations to ascertain the actual value and the amount of money evaded in taxes is ongoing.
Three people have since been arrested according to detectives. Nyaga spoke yesterday during a verification exercise of some of the goods that had been stored in a warehouse within New Horizons Park in Ruiru, Kiambu County.
He said there was strong evidence that the goods were part of the consignment which had been declared for export but was diverted to Ruiru as a scheme of evading taxes.
He said their investigation would also establish whether those arrested have been evading tax in their previous businesses.
“This is huge tax evasion syndicate involving diversion of goods into the local market. The verification of the goods is part of our investigations to establish the circumstances under which the goods that were destined for South Sudan found themselves in Ruiru,” said Nyaga.
He warned exporters who divert goods destined for export into the local market that their days were numbered.
He said through sealing tax evasion loopholes and pilferages, the country has been able to achieve and surpass its revenue targets as witnessed last year.
On Friday last week, the office of the Director of Criminal Investigation (DCI) through its social media platforms announced seizure of the goods and arrest of three individuals behind the diversion of the goods.
The report indicated that the goods belonged to Khadija Abdi Mohamud, a businesswoman who supplies to local traders in Southern Sudan and were imported on July, 15, 2021.
It added that when the goods failed to reach its intended destination within the stipulated period, Khadija filed a report with the police and investigations established that they had been diverted to a warehouse in Ruiru.
By Muoki Charles