At least three Burundi nationals were arrested and 55 assorted stolen mobile phones recovered from them in Kisii Town.
Police said the three were mobile phone smugglers.
Police suspect the gadgets had been stolen elsewhere and were being collected for transportation to an unknown market. The police are looking for more suspects into the recovery.
The mobile phones were believed to have been stolen from locals and probably shipped to Burundi for a fresh market.
That enables them to handle the gadgets without being traced, police said.
Such incidents are common in urban areas. Police say the stolen gadgets are sold to neighbouring countries and efforts to break the cartels are ongoing.
In Nairobi, several suspects have been arrested in operations targeting repair shops that handle such stolen gadgets.
Some gadgets are stolen after victims are harmed or even killed hence serious charges follow.