KRA Seizes Over 55,000 Under-Declared Smartphones to Prevent Tax Loss

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

According to Kenya News Agency, the seizure was based on intelligence that suggested a consignment declared as consolidated cargo actually contained undeclared mobile phones and other high-value electronic goods.

The cargo included smartphones, shoes, clothing, automotive spare parts, household goods, electronic accessories, and other assorted items declared under five customs entries. A verification exercise revealed that the consignment contained 55,607 ordinary smartphones, far exceeding the 3,000 units declared in the customs documents.

Additionally, the exercise uncovered 309 undeclared high-end smartphones, including models such as the Samsung Galaxy S26 Ultra, Samsung Galaxy Z Fold, and Apple iPhone 17 Pro Max.

KRA stated that the findings indicated both under-declaration and non-declaration of dutiable goods, which would have led to a loss of government revenue. The offense violates Section 203 of the East African Community Customs Management Act (EACCMA), 2004, which penalizes false customs entries and evasion of duty.

Under this provision, a person found guilty of the offense could face imprisonment for up to three years or a fine of up to 10,000 US dollars.

The KRA is intensifying enforcement measures to detect and disrupt tax evasion schemes as part of its efforts to enhance tax compliance and promote fair trade. The Authority encourages the public, taxpayers, and businesses to report any information on individuals or networks involved in tax fraud through its whistle-blowing channels, assuring confidentiality and anonymity for informants.