Smartphone customs fraud: KRA finds 55,607 phones against 3,000 declared at Eldoret Airport

NAIROBI, Kenya Sep 22 – The Kenya Revenue Authority (KRA) has uncovered a major smartphone customs fraud at Eldoret International Airport after only 3,000 smartphones were declared out of 55,607 phones found in an imported consignment.

The discrepancy exposed a potential Sh50.4 million revenue loss to the Government, according to KRA.

The shipment was intercepted following intelligence received by KRA investigators indicating that the cargo contained un-manifested mobile phones and other high-value electronic goods.

The consignment, which was declared under five Customs entries, also contained shoes, clothing, automotive spare parts, household goods and electronic accessories.

A targeted verification by KRA investigators revealed that the consignment contained 55,607 ordinary smartphones, despite Customs declarations indicating that only 3,000 phones had been imported.

This means 52,607 smartphones were under-declared.

Investigators also discovered 309 high-end smartphones that had not been declared at all.

The undeclared premium devices included models such as the Samsung Galaxy S26 Ultra, Samsung Galaxy Z Fold and Apple iPhone 17 Pro Max.

KRA said the findings revealed significant concealment and misrepresentation of dutiable goods, resulting in a substantial understatement of the tax obligation on the shipment.

The Authority said the operation followed actionable intelligence and was part of its intelligence-led, risk- and sector-based enforcement strategy.

KRA said the approach combines intelligence analysis, targeted profiling and field interventions to identify high-risk consignments and detect revenue leakage.

The conduct uncovered during the verification potentially contravenes Section 203 of the East African Community Customs Management Act (EACCMA), 2004, which criminalises, among other offences, making false or incorrect Customs entries and knowingly participating in the fraudulent evasion of duty.

KRA said further investigations are underway to establish the full extent of the suspected fraud, identify all individuals and entities involved and trace any wider network connected to the scheme.

Those found culpable will be subjected to the law, including prosecution, the Authority said.

The Authority said the interception demonstrates its efforts to protect government revenue, disrupt illicit trade and safeguard the integrity of Kenya’s Customs system.

KRA said it will continue deploying intelligence, data analytics and coordinated enforcement operations to detect and dismantle networks involved in customs and tax fraud.

The Authority has also called on members of the public, taxpayers and businesses with information on customs fraud, under-declaration, non-declaration or concealment of goods to report such cases.

Information can be submitted through KRA’s iWhistle platform, with the Authority assuring informants that their identities will be protected and the information handled confidentially.