Money continues to leak from public coffers as a tax evasion scheme at Eldoret International Airport remains untouched, even after weeks of meetings and discussions meant to address the problem.
Reports show that the network is deeply embedded, operating in a way that allows high-end mobile phones to enter the country without the required taxes.
The losses are massive, with estimates pointing to up to Ksh 250 million disappearing every single week as the operation continues without any meaningful interruption.
Several meetings were held after exposés highlighted how the network works and the level of revenue being lost.
Interior Principal Secretary Raymond Omollo was placed at the centre of these engagements, bringing together the Kenya Revenue Authority, the Kenya Bureau of Standards, and other agencies to form a Multi-Agency Team and a Border Control Committee.
The goal was to understand what was happening and come up with a clear plan to stop the illegal trade. According to people familiar with the meetings, the PS was specifically instructed to gather the agencies so that the real gaps could be identified and addressed.
Officials who attended the sessions reportedly agreed that the racket thrives because of structural weaknesses within the system.
These weaknesses have made it easy for importers and some airport staff to evade taxes without fear of consequences.
Insiders say the team was directed to prepare a detailed report outlining what should be done to close the loopholes and stop the losses. However, even with these instructions, the situation appears unchanged.
Evidence of this came on November 26 when a plane carrying a shipment of high-end gadgets landed at Eldoret International Airport.
Most of the devices were released into the market without the proper taxes being paid. Another shipment was expected on December 3, and sources indicated that the same pattern would continue.
This has reportedly been the routine since October, shortly after the initial meetings took place, showing that those involved in the illegal trade have not slowed down.An insider who has followed the matter closely says millions continue to be diverted into pockets of a small group, while the country suffers.
Eldoret International Airport handles about 12,000 metric tons of valuable goods every year, and investigations reveal that a large portion of this passes through without taxation.
In September, authorities intercepted a consignment of over 21,000 smartphones worth more than Ksh 30 million, but this did little to disrupt the flow of undeclared goods.
Shortly after the interception, new consignments with similar issues were reported.Investigators estimate that Kenya is losing close to Ksh 12 billion each year through tax evasion involving high-end smartphones alone.
This loss has created an uneven playing field, leaving genuine traders struggling to compete with cheaper, untaxed products flooding the black market.
Despite increased monitoring, the people behind the network seem to have intensified their operations, expanding their reach and building stronger connections.
Information from multiple sources suggests that the same illegal activities are taking place at other entry points, including the Inland Container Depot in Nairobi, Mombasa, and Jomo Kenyatta International Airport.
There are even discussions within the syndicate about shifting part of the operation to neighbouring countries such as Tanzania and Somalia, where they believe they can continue with less scrutiny.
Those in the import and retail business are calling on the government to step in firmly and ensure that all players operate fairly.
They argue that the current situation is hurting legitimate trade and draining revenue that the country badly needs. Several sources also claim that top officials are aware of the ongoing activities, adding to concerns about how long the issue will continue without strong intervention.
Authorities have not issued any formal statement, leaving many wondering when meaningful action will finally be taken.
Add Comment