The Kenya Revenue Authority (KRA) has seized a consignment containing more than 55,000 smartphones at the Eldoret International Airport after establishing that most of the devices had not been properly declared.
The enforcement operation, which followed an intelligence report, prevented an estimated tax loss of Sh21.5 million. The consignment was part of consolidated cargo containing smartphones, shoes, clothing, automotive spare parts, household goods, electronic accessories and other assorted items.
It had been declared under five Customs entries, with only 3,000 ordinary smartphones listed in the documentation.
What did KRA find?
A verification exercise found 55,607 ordinary smartphones in the consignment, significantly more than the 3,000 units that had been declared.
KRA also discovered 309 high-end smartphones that had not been declared at all. The devices included Samsung Galaxy S26 Ultra, Samsung Galaxy Z Fold and Apple iPhone 17 Pro Max models. The authority said the findings pointed to both under-declaration and non-declaration of taxable goods.
The inspection was launched after intelligence received by KRA indicated that the cargo contained unmanifested mobile phones and other high-value electronic goods. Officials subsequently carried out a detailed verification to establish whether all the smartphones and other dutiable items had been properly declared to Customs.
What does the law say about tax evasion?
KRA said the suspected tax evasion contravenes Section 203 of the East African Community Customs Management Act (EACCMA), 2004.
The law provides that a person who makes a false or incorrect Customs declaration, or knowingly participates in fraudulent evasion of duty, commits an offence. Those convicted can face a prison term of up to three years or a fine of up to $10,000.
KRA said it was continuing with efforts to detect tax evasion schemes and strengthen compliance with tax laws and Customs procedures.
The authority said such enforcement measures were also intended to promote fair competition among businesses operating in the market.
KRA has urged members of the public, taxpayers and businesses with information about individuals, companies or networks involved in tax fraud, including the generation, sale, purchase or use of fictitious VAT invoices, to report them.
The authority said information provided would be treated confidentially and that the identities of informants would remain anonymous. Tax fraud can be reported through KRA’s iWhistle platform or by calling 020 4 999 999 or 0711 099 999.
