Eldoret Airport./FILE
The Kenya Revenue Authority (KRA) has uncovered a major smartphone customs fraud scheme at Eldoret International Airport after investigators found more than 55,000 phones in a consignment that had been declared as just 3,000.
The consignment contained 52,607 more ordinary smartphones than had been declared to Customs, while a further 309 high-end phones had not been declared at all.
KRA estimates that the alleged under-declaration and non-declaration could have denied the government Sh50.4 million in revenue.
The consignment was intercepted after KRA investigators received intelligence indicating that it contained un-manifested mobile phones and other high-value electronic goods.
It formed part of consolidated cargo comprising smartphones and other assorted goods, including shoes, clothing, automotive spare parts, household goods and electronic accessories. The goods had been declared under five Customs entries.
KRA investigators conducted a targeted verification of the cargo to establish whether the Customs declarations matched the actual contents.
They found 55,607 ordinary smartphones against the 3,000 that had been declared, resulting in an under-declaration of 52,607 units.
The verification also uncovered 309 high-end smartphones that had not been declared.
Among the undeclared phones were premium models, including 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 in a statement.
The authority said the findings potentially contravene Section 203 of the East African Community Customs Management Act (EACCMA), 2004.
The law criminalises, among other offences, making false or incorrect Customs entries and knowingly participating in the fraudulent evasion of duty.
KRA said it was conducting further investigations to establish the full extent of the alleged fraud, identify the persons and entities involved and trace the wider network connected to the scheme.
“Persons found culpable will be subjected to the full force of the law, including prosecution,” the authority said.
KRA said the interception demonstrated the effectiveness of its intelligence-led, risk- and sector-based enforcement approach.
The authority said the approach combines intelligence analysis, targeted profiling and field interventions to identify high-risk consignments, uncover revenue leakage and disrupt networks involved in customs fraud and tax evasion.
KRA said it would continue using intelligence, data analytics and coordinated enforcement operations to detect and disrupt customs and tax fraud while facilitating legitimate trade.
It also urged members of the public, taxpayers and businesses with information on customs fraud, under-declaration, non-declaration, concealment of goods or other forms of revenue leakage to report such cases.
KRA said information received would be treated with strict confidentiality and that the identities of informants would be protected.
