KRA seizes 53,000 under-declared smartphones at Eldoret Airport

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Kenya Revenue Authority (KRA) has seized a consignment containing 53,000 under-declared smartphones at Eldoret International Airport, averting a potential tax loss of Sh21.5 million.

KRA enforcement teams intercepted the consignment after an intelligence report indicated it contained undeclared mobile phones and other high-end electronic goods.

The cargo, which had been declared under five Customs entries, was part of consolidated shipments that also included shoes, clothing, automotive spare parts, household goods, electronic accessories and other assorted items.

KRA said an initial declaration listed only 3,000 smartphones. However, verification established 55,607 ordinary smartphones, alongside 309 undeclared high-end smartphones.

The high-end devices included Samsung Galaxy S26 Ultra, Samsung Galaxy Z Fold and Apple iPhone 17 Pro Max models.

“The consignment therefore reflects both under-declaration and non-declaration of dutiable goods,” KRA said in a statement issued on Wednesday.

The tax authority said the verification exercise was conducted to establish whether all mobile phones contained in the consignment had been properly declared.

KRA said the alleged 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 entry, or knowingly participates in the fraudulent evasion of duty, commits an offence.

“A person who, in any matter relating to Customs, makes any entry which is false or incorrect in any particular, or in any way is knowingly concerned in any fraudulent evasion of the payment of any duty, commits an offence,” KRA said, citing the law.

According to the authority, a person convicted under the provision is liable to imprisonment for a term not exceeding three years or a fine of up to US$10,000.

KRA said it was intensifying efforts to uncover tax evasion schemes to improve revenue compliance and ensure adherence to tax laws and procedures.

“KRA is actively engaged in unearthing tax evasion schemes to boost tax revenue compliance as well as adherence to tax laws and procedures, hence ensuring fair trade is maintained within the market,” the authority said.

The authority also appealed to members of the public, taxpayers and businesses with information on individuals, companies or networks involved in the generation, sale, purchase or use of fictitious VAT invoices to report them.

KRA said information provided would be treated confidentially and the identity of informants kept anonymous.