The Kenya Revenue Authority (KRA) has uncovered a major customs fraud scheme at Eldoret International Airport after intercepting a consignment containing tens of thousands of smartphones that had allegedly been under-declared.
The taxman said the consignment contained 52,607 more ordinary smartphones than declared, while an additional 309 high-end smartphones had not been declared at all, exposing the Government to a potential revenue loss estimated at Sh50.4 million.
The consignment 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 moved in after receiving intelligence indicating that the consignment contained un-manifested mobile phones and other high-value electronic goods.
A targeted verification subsequently revealed a significant discrepancy between the quantities declared and the actual contents of the shipment.
According to KRA, only 3,000 smartphones had been declared, yet officers found 55,607 ordinary smartphones, representing an under-declaration of 52,607 units.
The verification also uncovered 309 high-end smartphones that had not been declared to Customs.
Among the undeclared devices 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.
The authority said the interception demonstrates the effectiveness of its intelligence-led, risk- and sector-based enforcement strategy, which combines intelligence analysis, targeted profiling and field operations to identify high-risk consignments and combat revenue leakage.
The conduct uncovered during the verification could constitute offences under 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 investigations are ongoing to establish the full extent of the suspected fraud, identify individuals and companies involved and determine whether the operation is linked to a wider network.
“Persons found culpable will be subjected to the full force of the law, including prosecution,” the authority said.
KRA added that the operation forms part of its wider efforts to protect government revenue, disrupt illicit trade and safeguard the integrity of Kenya’s Customs system while ensuring compliant businesses operate on a level playing field.
The authority said it will continue deploying intelligence, data analytics and coordinated enforcement operations to detect and dismantle networks involved in customs and tax fraud.
KRA has also appealed to members of the public, taxpayers and businesses to provide information on suspected customs fraud, including under-declaration, non-declaration and concealment of goods.
It said information supplied by whistleblowers would be treated with strict confidentiality and that the identities of informants would be protected.
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