NAIROBI, Kenya – The Kenya Revenue Authority (KRA) has uncovered an alleged customs fraud scheme at Eldoret International Airport after investigators found more than 55,000 smartphones in a consignment declared to Customs as just 3,000 phones.
KRA said the consignment contained 55,607 ordinary smartphones, meaning 52,607 more units than had been declared.
Investigators also found 309 high-end smartphones that had not been declared at all.
The authority estimates that the alleged under-declaration and non-declaration could have denied the government approximately Sh50.4 million in revenue.
KRA intercepts high-value consignment
The consignment was intercepted following intelligence received by KRA indicating that it contained un-manifested mobile phones and other high-value electronic goods.
It formed part of consolidated cargo containing smartphones and assorted goods, including shoes, clothing, automotive spare parts, household goods and electronic accessories.
The goods had been declared under five separate Customs entries.
KRA investigators subsequently carried out a targeted verification to establish whether the declarations matched the actual contents of the consignment.
52,607 smartphones allegedly concealed
The verification revealed a major discrepancy between the declared quantity and the actual number of ordinary smartphones.
KRA said only 3,000 phones had been declared, compared with the 55,607 units found by investigators.
This resulted in an alleged under-declaration of 52,607 smartphones.
The inspection also uncovered another 309 premium smartphones that had allegedly not been declared to Customs.
Among the high-end devices were models identified by KRA as the Samsung Galaxy S26 Ultra, Samsung Galaxy Z Fold and Apple iPhone 17 Pro Max.
“Taken together, the findings reveal significant concealment and misrepresentation of dutiable goods, substantially understating the true tax obligation on the consignment,” KRA said.
KRA cites Customs law
The authority said the findings potentially contravene Section 203 of the East African Community Customs Management Act (EACCMA), 2004.
The provision criminalises, among other conduct, making false or incorrect Customs entries and knowingly participating in fraudulent evasion of duty.
KRA said the Sh50.4 million figure represents its estimate of potential revenue that could have been lost had the alleged under-declaration and non-declaration gone undetected.
The investigation is ongoing and culpability has not yet been determined.
Further investigations underway
KRA said investigators are now working to establish the full extent of the alleged fraud and identify the individuals and companies involved.
The authority is also seeking to trace any wider network that may be connected to the suspected customs fraud and tax evasion.
“Persons found culpable will be subjected to the full force of the law, including prosecution,” KRA said.
The case will therefore depend on the outcome of the ongoing investigations and any subsequent legal proceedings.
KRA steps up intelligence-led enforcement
The Eldoret interception is part of what KRA described as its intelligence-led, risk- and sector-based enforcement approach.
The strategy combines intelligence analysis, targeted profiling and physical verification of high-risk consignments to detect revenue leakage and disrupt suspected customs fraud and tax evasion.
KRA said it is increasingly using data analytics and coordinated enforcement operations to identify suspicious consignments while facilitating legitimate trade.
Public urged to report customs fraud
KRA has urged members of the public, taxpayers and businesses to report information relating to suspected customs fraud, including under-declaration, non-declaration and concealment of goods.
