This archive report was first published on 3 September 2021.
Friday, September 3, 2021, marked a significant victory for the Kenya Revenue Authority (KRA) as they intercepted 25 containers loaded with hides and skins worth millions of shillings at the Mombasa port.
The containers, valued at millions of shillings, were among 50 others set aside for verification. According to Edward Karanja, the Commissioner of Investigation and Enforcement, the containers were suspected to be misdeclared as other goods to evade export duties.
"We suspected that the containers were misdeclared as other goods to evade the payment of export duties," Karanja said.
The KRA claims that unscrupulous traders stuff containers with hides and skins at local godowns in the absence of Customs officers, then make false declarations of goods, local exporter, country of destination, and weight.
"The goods declared in customs export documents are disguised as those that are exempted from export duties," Karanja added.
As a result of the KRA's efforts, three suspects were arrested trying to offer a Sh700,000 bribe during the investigation. The taxman has tightened its noose on a tax evasion racket that exports locally sourced hides and skins without paying duty.
"I encourage the public to undertake legitimate and clean business. KRA has an elaborate intelligence network to detect, disrupt, and deter such tax evasion schemes to create a level playing field for all," Karanja said.
