The Kenya Revenue Authority (KRA) enforcement teams have intercepted a consignment of 21,600 undeclared high-end smartphones, estimated to be worth Sh16.1 million in unpaid taxes, at the Eldoret International Airport.
The seizure was part of a larger cargo that also included 5,000 declared smartphones valued at Sh6.4 million in tax , as well as shoes, clothes, auto spare parts, household items, and other electronic accessories.
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The consignment was flagged after intelligence reports indicated a recurring smuggling trend.
According to KRA, the goods had been declared under consolidated cargo categories by another agency and consigned to a cargo company through a plane that landed on September 18, 2025.
Investigations revealed that many items were either falsely declared or concealed as clothes and household goods.
Officials said the smuggling scheme violates Section 203 of the East African Community Customs Management Act (EACCMA), 2004, which criminalizes false customs declarations and fraudulent tax evasion.
The offence carries penalties of up to three years in prison or fines of up to USD 10,000.
“KRA is actively unearthing tax evasion schemes to boost compliance and ensure fair trade,” the Commissioner of Investigations and Enforcement said in a statement.
Sources revealed that the phones belong to individuals linked to powerful government figures, with insiders alleging a cover-up by sections of KRA’s own customs department.
The interception follows years of whistleblower tips to KRA since 2023, many of which stalled due to internal frustrations.
Reports indicate that some officials at Eldoret Airport were negotiating corrupt deals with consignees to release the cargo, potentially costing the government millions in lost revenue.
Insiders warn that the smuggling network relies on “group consolidation” to disguise shipments of high-end gadgets, aided by compromised customs staff.
“The big dealers are bribing their way to sneak in high-end mobile phones. They must be stopped,” one official said.
KRA has now launched fresh investigations, with investigators dispatched to Eldoret. Executives within the authority are reportedly furious, demanding accountability.
A cargo management framework approved on June 11, 2025, remains unimplemented, raising further concerns about systemic loopholes.
This scandal is the latest in a series of tax evasion rackets at Eldoret Airport, where rogue traders, allegedly protected by influential figures, collude with corrupt officials to smuggle goods, depriving the government of vital tax revenues.
