By Robert Mutasi 
The Kenya Revenue Authority (KRA) has uncovered an alleged customs fraud scheme at Eldoret International Airport after investigators found more than 55,000 smartphones in a consignment declared to contain only 3,000 phones.
KRA said its investigators discovered 55,607 ordinary smartphones, meaning 52,607 more units than those declared to Customs.
The verification also uncovered 309 high-end smartphones that had not been declared at all. Among the undeclared devices were premium models including the Samsung Galaxy S26 Ultra, Samsung Galaxy Z Fold and Apple iPhone 17 Pro Max.
The authority estimates that the alleged under-declaration and non-declaration of the phones could have resulted in a loss of about KSh50.4 million in government revenue.
The consignment was intercepted after KRA investigators received intelligence indicating that it contained un-manifested mobile phones and other high-value electronic goods.
The cargo formed part of a consolidated shipment containing smartphones and assorted goods, including shoes, clothing, automotive spare parts, household items and electronic accessories.
The goods had been declared under five Customs entries.
Following the intelligence report, KRA investigators conducted a targeted verification exercise to determine whether the contents of the shipment matched the declarations made to Customs.
The exercise revealed the significant discrepancy between the declared and actual number of smartphones.
KRA said the findings pointed to the alleged concealment and misrepresentation of dutiable goods, which substantially reduced the tax obligation attached to the consignment.
“Taken together, the findings reveal significant concealment and misrepresentation of dutiable goods, substantially understating the true tax obligation on the consignment,” the authority said.
KRA said the alleged actions could contravene Section 203 of the East African Community Customs Management Act (EACCMA), 2004. The provision covers offences including making false or incorrect Customs entries and knowingly participating in fraudulent evasion of duty.
The authority has launched further investigations to establish the full extent of the suspected fraud and identify the individuals and companies involved.
Investigators are also seeking to establish whether the shipment is connected to a wider network involved in customs fraud and tax evasion.
KRA said anyone found culpable would face legal action, including prosecution.
The authority described the interception as an indication of the role played by intelligence-led enforcement in detecting potential revenue leakage at entry points.
According to KRA, its enforcement strategy combines intelligence analysis, risk profiling, data analytics and targeted field operations to identify high-risk consignments and disrupt customs fraud.
The authority said it would continue strengthening the use of intelligence and data to detect under-declaration, non-declaration and concealment of goods while facilitating legitimate trade.
KRA has also urged taxpayers, businesses and members of the public with information concerning customs fraud or other forms of revenue leakage to report the cases.
The authority said information provided would be treated confidentially and that the identities of informants would be protected as investigations into the Eldoret consignment continue.