KRA unearths Sh56m smartphone tax evasion scheme

An importer and a clearing agent face prosecution after the Kenya Revenue Authority (KRA) uncovered Sh56 million in under-declared tax on a consignment of mobile phones imported through the Eldoret International Airport.

KRA investigators found 55,607 basic smartphones in a shipment whose owners had only declared 3,000 gadget for taxation in customs documents. The investigators also discovered 309 undeclared high-end phones, highlighting the difficulty of relying on broad customs benchmarks to assess consolidated cargo, particularly where large quantities of high-value electronics are packed into mixed shipments.