KRA seizes thousands of under-declared smartphones at Eldoret airport

The Kenya Revenue Authority has seized more than 53,000 under-declared smartphones at Eldoret International Airport, averting an estimated tax loss of Sh21.5million.

In a press statement on Wednesday, KRA said the consignment was intercepted following an intelligence report indicating that mobile phones and other high-value electronic goods had not been fully declared.

The shipment was part of consolidated cargo containing shoes, clothing, automotive spare parts, household goods, electronic accessories, mobile phones and other items.

It had been declared under five customs entries, with 3,000 smartphones listed among the goods.

However, a subsequent verification found 55,607 ordinary smartphones, according to KRA.

The inspection also uncovered 309 high-end smartphones that had not been declared, including Samsung Galaxy S26 Ultra, Samsung Galaxy Z Fold and Apple iPhone 17 Pro Max models.

The authority said the findings amounted to both under-declaration and non-declaration of goods liable for tax.

KRA said the seizure followed intelligence that the consignment contained unmanifested mobile phones and other high-end electronic goods.

It said the alleged tax evasion was contrary to Section 203 of the East African Community Customs Management Act (EACCMA), 2004.

“The law provides for penalties including imprisonment of up to three years or a fine of up to Sh 1.3 million for making false or incorrect customs entries or knowingly participating in the fraudulent evasion of customs duty,” reads the statement.

KRA said it was continuing to investigate tax evasion schemes as part of efforts to improve tax compliance and promote fair competition in the market.

The authority has also urged members of the public, taxpayers and businesses to report information about individuals or companies involved in tax fraud, including the generation, sale, purchase or use of fictitious VAT invoices.

KRA said information provided through its reporting channels would be treated confidentially and the identity of informants kept anonymous.