Government officials have yet to dismantle a multi-million Ksh tax evasion network operating at Eldoret International Airport, where losses of up to Ksh 250 million weekly are reported.
Following exposés that revealed the magnitude of the issue, a series of meetings and strategies were convened over several weeks in an effort to address the problem. The racket primarily involves high-end mobile phones. Tax evasion at Eldoret Airport remains rampant, costing the government Ksh250 million weekly, while importers and officials exploit structural loopholes to bypass payments.
Interior Principal Secretary Raymond Omollo presided over meetings with relevant agencies, after which media reports indicated that a Multi-Agency Team and a Border Control Committee were tasked with investigating the syndicate and preventing further revenue loss.
Sources indicate that the PS was instructed to convene the meetings to gain a clear understanding of the challenges.
Attendees reportedly agreed that structural loopholes enabled the tax evasion network to operate with impunity. An insider noted that they were directed to produce a report detailing measures to curb the menace.
Despite these interventions, the issue persists. On November 26, a plane carrying a consignment landed at the airport, and the majority of the gadgets were released without appropriate taxation.
Another consignment was expected on Wednesday, December 3, and insiders indicated that no changes were anticipated.
This pattern has continued since October, when the initial meetings were held, as importers and airport officials continue to be implicated in ongoing tax evasion.
One insider remarked that millions of Ksh are lost to a scheme that enriches a few at the expense of the public treasury.
Eldoret International Airport receives approximately 12,000 metric tons of valuable imports annually, much of which passes untaxed, investigations reveal.
The Multi-Agency Team comprises the Kenya Revenue Authority, the Kenya Bureau of Standards, and other relevant agencies. In September, a consignment of 21,600 smartphones valued at over Ksh 30 million was intercepted from a single cargo plane, yet shortly thereafter, additional consignments with undeclared devices were reported at the airport.
Investigations indicate that the government is losing approximately Ksh 12 billion annually in taxes on the importation of high-end smartphones, a loss attributed to a powerful syndicate.
Legitimate traders are subjected to unfair competition as these goods enter the black market unchecked.
As authorities monitor operations at Eldoret International Airport, the syndicate has intensified its activities.
Sources further indicate that the network has replicated the same operations at Inland Container Depot Nairobi, Mombasa, and Jomo Kenyatta International Airport.
It is reported that the syndicate has discussed the potential to relocate operations to neighbouring countries, including Tanzania and Somalia, where they believe the trade could continue with minimal interference.
Traders in the sector urge government action to ensure equitable competition and recovery of the taxes due.
Sources indicate that senior officials are aware of these activities.
Authorities have yet to release an official statement on the matter, while those affected continue to seek decisive intervention from the highest levels.