The Kenya Revenue Authority has seized a large consignment of illicit ethanol valued at Ksh16.26 million in an operation carried out near the Standard Gauge Railway corridor in Nairobi, dealing a blow to an underground trade that could have cost the government millions in lost taxes.
The seizure follows an intelligence-led operation after KRA officers received a tip-off about suspicious lorries allegedly transporting unlawful ethanol in the area. On acting on the information, the KRA Enforcement Team officers in Nairobi moved in, only to find that the lorries had already left the yard by the time they arrived.
Nevertheless, the operation was not a waste. Ethanol that had been discharged and loaded in the yard were recovered by the officers, identifying 20 drums, each containing 250 litres. As many as 5,000 litres of smuggled ethanol were seized.
KRA also impounded a Toyota Fielder believed to have been used by the owners of the illegal consignment. Investigators noted that the vehicle was fitted with gadgets suspected to be tracking system jammers, pointing to a well-planned attempt to evade detection by law enforcement agencies.
In KRA’s preliminary analysis, the seized ethanol if processed and released into the market could have produced about 48,200 bottles with an estimated market value of Ksh14.46 million. The vehicle is valued at Ksh1.8 million, bringing the total value of the seized goods to Ksh16.26 million.
Beyond the commercial value, the authority noted that the consignment posed a great revenue risk. KRA estimates that the government would have lost approximately Ksh7.42 million in taxes had the ethanol reached consumers, including Ksh2.6 million in Value Added Tax, VAT, and Ksh4.82 million in excise duty.
“All the seized goods and the motor vehicle have been detained at a KRA warehouse as investigations continue”, said the authority in a statement.
The current operation comes just a year after a similar crackdown in October last when KRA seized uncustomed goods valued at Ksh3.9 million during an operation at Lake Victoria. This recovered Ksh1.6 million in revenues that were largely connected to small traders who use lake routes to smuggle goods.
KRA has, therefore, said that the seizures underscore its unwavering undertaking in bringing down illicit trade networks that not only rob the State of revenue but also expose consumers to unsafe and unregulated products.
