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KRA seizes 55,607 under-declared smartphones, averting Sh21.5m tax loss

Kenya Revenue Authority (KRA) enforcement officers have seized 55,607 under-declared smartphones at Eldoret International Airport, averting a potential tax loss of Sh21.5 million.

The seizure followed intelligence indicating that a consignment declared as consolidated cargo contained undeclared mobile phones and other high-value electronic goods.

According to KRA, the cargo comprised smartphones, shoes, clothing, automotive spare parts, household goods, electronic accessories, and other assorted items declared under five customs entries.

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.

KRA said the findings constituted both under-declaration and non-declaration of dutiable goods, resulting in an attempted loss of government revenue.

The Authority 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.

KRA 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.

The Authority 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.

KRA said information provided through the channels would be treated confidentially and the identities of informants kept anonymous.

By Fredrick Maritim

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