Nyakundi Report has revealed a major smuggling network that is allegedly using Eldoret International Airport as a gateway to move high-end smartphones into Ethiopia while avoiding proper taxation, raising fresh concerns about how Kenya continues to lose billions of shillings in revenue through organized cross-border trade fraud.
Investigations indicate that smugglers have shifted their operations to Eldoret, turning the airport into a key transit point for expensive electronic gadgets, especially premium smartphones such as iPhones and Samsung devices.
The goods are reportedly imported into Kenya as transit cargo before being moved by road through various towns and eventually smuggled into Ethiopia through the Moyale border.
Sources familiar with the matter claim that more than 60 percent of electronic goods arriving through Eldoret Airport are destined for the Ethiopian market through illegal channels.
The route reportedly passes through Nakuru, Nyeri, Marsabit and other locations before reaching the border. Investigators believe the network is taking advantage of weaknesses in customs monitoring and border enforcement systems.
The scale of the operation has raised alarm among officials. Cargo records reportedly show massive volumes of smartphones arriving at the airport within days.
In one week alone, flights delivered dozens of tonnes of mobile phones, with one shipment valued at approximately Sh1 billion.
The figures have intensified questions about how such large quantities of electronics can move through the country without attracting closer scrutiny.
Sources say the gadgets attract minimal taxation compared to what would normally be expected, resulting in significant losses to government revenue.
Estimates suggest that Kenya could be losing up to Sh250 million every week through tax evasion linked to the smuggling network.
Over a year, losses from unpaid taxes on high-end smartphones alone are believed to reach as much as Sh12 billion.
The allegations have also renewed concerns about possible collusion between importers and corrupt officials within key institutions responsible for customs clearance and cargo inspections.
While authorities have previously intercepted undeclared shipments, including thousands of smartphones worth tens of millions of shillings, insiders argue that enforcement efforts have not been sufficient to dismantle the network.
Following earlier reports about tax evasion at Eldoret Airport, Interior Principal Secretary Raymond Omollo led meetings involving agencies such as KRA and KEBS.
A Multi-Agency Team and a Border Control Committee were established to address loopholes and strengthen oversight.
However, sources claim the illegal trade continues despite those interventions.
The scandal highlights a larger problem facing Kenya’s revenue collection efforts.
As the government pushes for higher tax compliance from businesses and ordinary citizens, allegations that powerful smuggling cartels are moving billions of shillings worth of goods through major entry points continue to expose weaknesses in enforcement systems.
Even as scrutiny increases at Eldoret International Airport, investigators fear the syndicates could simply relocate their operations to other points including the Inland Container Depot in Nairobi, the Port of Mombasa, Jomo Kenyatta International Airport or even neighboring countries if tighter controls are introduced.
The growing concern is that unless the entire network is dismantled, the losses to taxpayers and legitimate businesses will continue.











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