Kenya Revenue Authority Examines Alleged Conspiracy Involving 33,000 High-End Smartphones Worth Sh50 Million
The Kenyan government is currently investigating a purported scheme to smuggle 33,000 premium smartphones through Eldoret International Airport, a situation that may result in a staggering loss of Sh50 million in unpaid taxes. Investigators have characterized this case as one of the most intricate customs evasion operations detected at this transportation hub.
The inquiry was initiated following a whistleblower’s revelation, centering on a shipment that arrived on September 18, 2025, via a cargo plane belonging to one of Africa’s premier airlines.
Sources privy to the situation have disclosed that the smartphones were deliberately misclassified as clothing and household goods to sidestep obligations for import duties and value-added taxes.
Officials from the Kenya Revenue Authority (KRA), who requested anonymity due to the sensitive nature of the investigation, have indicated that the scheme appears to involve “individuals with affiliations to influential government personnel,” constituting a systematic attempt to defraud the national treasury.
“Urgent attention is required on this matter. The implications are severe, as it deprives the government of essential revenue,” remarked one official familiar with the case.
This emerging scandal has stirred significant unrest within the KRA’s enforcement division, with higher-ups reportedly pressing for accountability from customs officials stationed at the airport who might have aided in the alleged deception.
Investigators have been dispatched to Eldoret to amass evidence and interview relevant staff members.
The current situation contributes to escalating apprehensions regarding tax compliance at Eldoret International Airport, which has increasingly become a vital entry point for both legitimate trade and illicit merchandise.
The airport has a history of being involved in customs enforcement actions, with authorities regularly conducting auctions of confiscated items, including smartphones and laptops, whose importers failed to pay the requisite duties.
The timing of this investigation is particularly noteworthy in light of Health Cabinet Secretary Aden Duale’s recent initiatives aimed at combating the influx of illicit products into Kenya through various entry points.
In June 2025, Duale oversaw the obliteration of over 5.5 tonnes of illegal tobacco products seized at Eldoret Airport, characterizing such smuggling activities as “instruments of harm’’ targeting the youth.
“As a signatory to WHO protocols aimed at eradicating illicit tobacco products, it is both a legal and moral imperative to enforce such measures,” Duale stated during the destruction event at Moi Teaching and Referral Hospital.
Subsequently, the Health CS announced the suspension of all existing licenses related to nicotine products and issued a stern warning that the government would not permit Kenya to become “a dumping ground for harmful substances.”
Notably, the smartphone smuggling incident represents a distinct category of customs evasion, primarily aimed at circumventing tax liabilities rather than importing banned goods.
Industry analysts assert the scale of this alleged scheme—featuring 33,000 units—suggests a well-structured network with an extensive understanding of customs protocols and possibly insider assistance.
The KRA has historically grappled with customs evasion at major points of entry, with prior instances encompassing a wide array of goods, from construction materials to consumer electronics.
In recent years, enforcement measures have intensified as the government strives to elevate revenue collection amidst increasing fiscal pressures.
The inquiry at Eldoret occurs against a backdrop of heightened scrutiny regarding tax compliance in Kenya, with several prominent cases currently under judicial examination.
In April 2025, two contractors were charged with evading Sh290 million in taxes, while various recent investigations have targeted individuals and firms accused of systematic underreporting of income and imports.
KRA officials refrained from commenting on the smartphone case, citing the ongoing investigation. Nevertheless, sources indicate the authority is prioritizing the issue due to the scale of the fraud and concerns regarding possible corruption within its own ranks.
The investigation aims to ascertain whether customs officials at Eldoret Airport played a direct role in facilitating the scheme or were simply negligent in their responsibilities.
Preliminary findings could potentially lead to criminal charges against importers, customs brokers, and possibly even government officials.
This case underscores the persistent challenges faced by Kenya in monitoring and regulating imports at secondary airports. These facilities may lack the advanced scanning technologies and oversight employed at major infrastructures such as Jomo Kenyatta International Airport in Nairobi.
The outcome of this investigation could significantly influence KRA’s future strategies for customs enforcement at regional airports and may lead to improved screening protocols for high-value consumer electronics, which have become increasingly susceptible to customs fraud due to their compact nature and elevated duty rates.
As the inquiry progresses, it serves as a sobering reminder of the intricate challenges that tax authorities confront in emerging markets, where sophisticated smuggling operations frequently exploit deficiencies in enforcement capabilities and, in some instances, benefit from official corruption.
Source link: Kenyainsights.com.
