The taxman officials intercepted a consignment of illicit ethanol worth Sh16.26 million near the Standard Gauge Railway (SGR) corridor in Nairobi, following an operation prompted by an intelligence tip-off about the movement of unlawful ethanol in the area.
Officers from the Kenya Revenue Authority (KRA) Enforcement Team, Nairobi, swung into action after receiving information that lorries reported to be transporting ethanol had been sighted within a yard near the SGR corridor.
However, the taxman said that upon arrival, their officers found that the lorries had already departed.
Despite the lorries leaving the scene, the enforcement team recovered the illicit ethanol that had been offloaded and stored within the yard.
The seizure included 20 drums, each with a capacity of 250 litres, totalling 5,000 litres of ethanol.
In addition to the ethanol, KRA officers recovered a Toyota Fielder, which is reported to have been used by the owners of the illicit product.
Investigators said t it was fitted with gadgets believed to be tracking system jammers, suggesting deliberate attempts to evade law enforcement.
Initial assessments by the taxman indicate that the seized ethanol, if compounded and released into the market, could have produced approximately 48,200 bottles with an estimated market value of Sh14.46 million.
“Preliminary assessments estimate that the seized ethanol, if compounded and released into the market, would have yielded approximately 48,200 bottles, with an estimated market value of Sh14.46 million. The motor vehicle is valued at Sh1.8 million, bringing the total value of goods seized to Sh16.26 million,” KRA said.
Analysis by KRA shows that the government would have suffered tax losses amounting to Sh7.42 million if the ethanol had reached the market, which includes Sh2.6 million in Value Added Tax (VAT) and Sh4.82 million in excise duty.
KRA revealed that all seized goods and the motor vehicle have been detained at a KRA warehouse as investigations continue.
The operation borders a similar one conducted by KRA in October last year that led to the interception of uncustomed goods worth Sh3.9 million during an operation in Lake Victoria.
The crackdown led to the recovery of Ksh1.6 million in revenue that was largely linked to small-scale traders attempting to smuggle goods through various lake routes.
It comes at a time when the government has announced a new war on drug trafficking and illicit alcohol.
Email your news TIPS to Editor@Kahawatungu.com — this is our only official communication channel
