Dealers Petition KRA to Probe Phone Smuggling Racket at Eldoret Airport
A group of electronic dealers has petitioned top Kenya Revenue Authority (KRA) officials to investigate claims of smuggling of goods valued at millions of shillings at the Eldoret International Airport. They say this has resulted in loss of taxes running into billions of shillings.
The group, which imports electronic
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A group of electronic dealers has petitioned top Kenya Revenue Authority (KRA) officials to investigate claims of smuggling of goods valued at millions of shillings at the Eldoret International Airport. They say this has resulted in loss of taxes running into billions of shillings.
The group, which imports electronic goods and particularly high-end mobile phones, cited one cargo that landed at the Eldoret Airport and was later smuggled out by people who had been waiting for it.
They claimed duty was not paid for the gadgets.
The dealers sent messages to top officials at KRA alerting them of the incident, saying the cargo was about 40 tonnes and contained thousands of assorted mobile phones.
“We have asked the top officials there to...
A group of electronic dealers has petitioned top Kenya Revenue Authority (KRA) officials to investigate claims of smuggling of goods valued at millions of shillings at the Eldoret International Airport. They say this has resulted in loss of taxes running into billions of shillings.
The group, which imports electronic goods and particularly high-end mobile phones, cited one cargo that landed at the Eldoret Airport and was later smuggled out by people who had been waiting for it.
They claimed duty was not paid for the gadgets.
The dealers sent messages to top officials at KRA alerting them of the incident, saying the cargo was about 40 tonnes and contained thousands of assorted mobile phones.
“We have asked the top officials there to investigate these actions being coordinated by six staff members. The country is losing billions due to this issue,” they said.
They argued that they are being disadvantaged at the airport due to corruption. Dealers petition KRA over mobile phone smuggling at Eldoret Airport, accusing staff of aiding tax evasion worth billions.
The smuggled goods are later driven to Nairobi’s Luthuli Avenue and sold to unsuspecting suppliers and buyers. Dealers petition KRA over mobile phone smuggling at Eldoret Airport, accusing staff of aiding tax evasion worth billions.
This development has prompted those being forced to pay taxes to report the matter to authorities.
“They usually bring in high-end mobile phones like iPhone and Samsung which, if taxed properly, can generate billions,” one dealer said.
The group added that two more planes were expected at the airport on Wednesday with more cargo estimated at more than 45 tonnes.
Sources said a team had been sent from Nairobi to visit the airport and verify the claims.
There was no immediate official comment from the taxman.
Previous such claims led to reshuffles at the airport, but the group insists the smuggling continued.
The government had earlier directed most cargo planes to land at Eldoret in efforts to boost traffic and viability of the facility.
Over the years, airport staff have been repeatedly mentioned in tax evasion.
A probe is underway into the same.
This follows reports of rampant tax evasion through undervaluation and failure to inspect the goods.
Four major companies have been named in the smuggling of dozens of smartphones into the country.
This has led to losses worth millions of shillings as KRA continues its revenue collection efforts.
The gang is said to use Eldoret Airport, Namanga, Lungalunga, Taveta, Malaba and Busia border points.
They also use ships at the Mombasa port and some flights through Jomo Kenyatta International Airport.
Company managers reportedly boast of having paid off officers at the entry points to make their operations easier.
They allegedly pay eight dollars per kilo of cargo instead of the expected per piece charge.
“They are paying eight dollars per kilo for goods that should be charged per piece. This has denied us a lot of money,” said one official familiar with the case.
He added that there are fears the same companies could be involved in smuggling ivory out of the country.
“They boast that they can export anything. We do not know if the taxman is aware of this.”
