The Kenya Revenue Authority (KRA) has intercepted a consignment of 21,600 undeclared high-end smartphones at the Eldoret International Airport, attracting taxes amounting to Sh16,102,137.
According to a statement issued by the agency on September 21, the consignment, which arrived on September 18 aboard a cargo plane, was declared by Portyard Limited and consigned to Pemba Cargo Limited.
KRA said the shipment was part of consolidated goods that included 5,000 declared smartphones valued at Sh6.4 million, as well as shoes, clothes, auto spare parts, household items and electronic accessories. The cargo was intercepted following an intelligence report.
"Investigations have established that the declarations of the goods were done either expressly or under consolidated cargo under each category," KRA said.
KRA noted that the scheme contravenes Section 203 of the East African Community Customs Management Act (EACCMA), 2004, which criminalises false or fraudulent declarations aimed at tax evasion.
Under the law, offenders face a fine of up to $10,000 (Sh1.29 million), a jail term not exceeding three years, or both.
The authority said it remains committed to curbing tax evasion to boost compliance, protect revenue and ensure fair trade.
"KRA is actively engaged in unearthing tax evasion schemes in order to boost tax revenue compliance as well as adherence to tax laws and procedures, hence ensuring fair trade is maintained within the market," said the taxman.
