KRA Uncovers Smartphone Customs Fraud at Eldoret Airport
KRA estimates that the alleged under-declaration and non-declaration of the smartphones could have resulted in a revenue loss of approximately KSh50.4 million.
KRA intercepts thousands of undeclared smartphones at Eldoret International Airport in suspected customs fraud. Photo: The Star Kenya.
By Robert Mutasi
The Kenya Revenue Authority (KRA) has intercepted a consignment containing tens of thousands of undeclared and under-declared smartphones at Eldoret International Airport, in a case that could have cost the government millions of shillings in lost revenue.
KRA investigators found 55,607 ordinary smartphones in the shipment, although Customs documents had listed only 3,000 units. This means an additional 52,607 phones had not been declared.
The inspection also revealed 309 high-end smartphones that were completely missing from the Customs declarations.
The undeclared premium devices included the Samsung Galaxy S26 Ultra, Samsung Galaxy Z Fold and Apple iPhone 17 Pro Max.
KRA estimates that the alleged under-declaration and non-declaration of the smartphones could have resulted in a revenue loss of approximately KSh50.4 million.
The consignment was flagged after KRA investigators received intelligence suggesting that the shipment contained mobile phones and other expensive electronic items that had not been properly declared.
It was part of consolidated cargo containing a variety of goods, including footwear, clothes, vehicle spare parts, household products and electronic accessories. The shipment had been entered through five Customs declarations.
Investigators subsequently carried out a targeted physical verification to compare the goods in the shipment with the information contained in the Customs entries.
The exercise uncovered the major discrepancy in the number of smartphones.
KRA said the findings indicated possible concealment and inaccurate declaration of goods on which Customs duty and other taxes were payable.
The authority said the suspected conduct could amount to offences under Section 203 of the East African Community Customs Management Act (EACCMA), 2004.
The law provides for offences relating to false or incorrect Customs declarations and fraudulent evasion of duty.
KRA has commenced further investigations to establish how the shipment was handled, determine the parties involved and establish whether the consignment is linked to a broader customs fraud network.
The authority said individuals found responsible would face the full consequences of the law, including prosecution.
KRA said the interception demonstrated the importance of intelligence-led enforcement in identifying suspicious shipments and protecting government revenue.
The authority said it uses intelligence analysis, risk profiling, data analytics and targeted inspections to identify high-risk cargo and address customs violations.
KRA also urged businesses and members of the public who have information concerning customs fraud, under-declaration, non-declaration or concealment of goods to report such cases.
The authority said information supplied by whistleblowers would be handled confidentially and that the identities of informants would be protected.
Investigations into the Eldoret shipment are continuing as KRA works to establish the full value of the goods and the extent of the alleged revenue loss.
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