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KRA Blocks Sh16 million phone smuggling attempt at Eldoret Airport

The interception of a huge consignment of smartphones at Eldoret International Airport has once again exposed the deep challenges Kenya faces with smuggling and tax evasion.

The Kenya Revenue Authority confirmed that 21,600 undeclared high-end phones were seized, goods that should have generated about Sh16.1 million in taxes.

Alongside the undeclared items, the cargo also carried 5,000 declared smartphones worth Sh6.4 million in tax, as well as a mix of shoes, clothes, auto spare parts, household goods, and other electronics.

The discovery followed intelligence reports pointing to a pattern of smuggling that has been taking place through the airport.

According to KRA, the goods had been presented under consolidated cargo by another clearing agency, and they were flown in on September 18, 2025. Investigations showed that many items were either falsely declared or hidden under ordinary household goods.

The enforcement team described this as a violation of Section 203 of the East African Community Customs Management Act of 2004, which treats false declarations and fraudulent tax evasion as serious crimes.

Offenders risk jail terms of up to three years or fines reaching USD 10,000. KRA said in a statement that it is determined to expose such schemes in order to protect honest traders and improve compliance.

However, the interception has also lifted the lid on deeper issues within customs operations. Sources claimed that the shipment belonged to people with close ties to powerful government figures and that parts of KRA’s customs department had slowed down or ignored whistleblower alerts over the years.

Reports suggest that officials at Eldoret Airport had begun negotiations with consignees to release the cargo illegally, a move that would have deprived the government of millions in taxes.

The method used by smugglers appears to rely heavily on group consolidation, where expensive devices are disguised as bulk consignments of clothing and other cheap goods, making it harder for enforcement officers to detect.

One insider explained that big dealers often use bribes to move shipments past inspections, a practice that has weakened public trust in the system.

Senior officials within KRA are said to be frustrated, with some demanding swift accountability after the latest scandal.

The interception has also renewed focus on a cargo management framework that was approved in June 2025 but has not yet been put into full effect. Critics say the failure to implement such safeguards has created loopholes that smugglers continue to exploit.

The events at Eldoret Airport form part of a larger pattern of tax evasion rackets where rogue traders, sometimes with the protection of influential figures, collude with compromised customs staff to smuggle goods into the country.

This practice not only undermines fair business competition but also denies the government vital revenue needed for public services. The latest seizure shows how deep the problem runs and highlights the urgent need for stronger enforcement, accountability, and reforms in cargo handling.