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Tag: smuggling

  • Two charged with smuggling ethanol worth Ksh 8 million tax

    Two charged with smuggling ethanol worth Ksh 8 million tax

    A truck driver and turn boy have been charged at Kisumu Law Courts with smuggling 8,750 litres of ethanol worth Kshs 8.4 million in tax.

    Salim Otieno Ooko and Joseph Odhiambo, were charged jointly before Principal Magistrate Dennis Ogal.

    The two were arrested on July 23, 2025 at Nyamasaria area along Kisumu- Nairobi highway in Kisumu County after their lorry was found transporting 35 barrels of 250 litres each of suspected ethanol while concealed in 66 empty wooden crates.

    They are facing charges of conveying and being in possession of restricted goods as well as concealment of imported goods.

    All the charges are contrary to the East Africa Community Management Act,2004 and the Excise Duty Act,2025.

    They pleaded not guilty and were released on a bond of Ksh 500,000. The case will be heard on September 23, 2025.

    Importation of ethanol is restricted under the East African Community Customs Management Act, 2004.

    Smuggled ethanol is mainly used in the illegal manufacture of second-generation alcoholic drinks, which pose high health risks to citizens as well as unfair trade competition.

    Kenya Revenue Authority (KRA) says it is actively unearthing tax evasion schemes to boost tax compliance and adherence to tax laws and procedures while ensuring fair trade within the market.

  • Regional tax authorities want joint intelligence unit to tackle smuggling

    Regional tax authorities want joint intelligence unit to tackle smuggling

    Revenue authorities from the East African Community (EAC) member states are mulling for the formation of a single intelligence unit to tackle smuggling which contribute to revenue losses.

    During the 52nd East African Revenue Authorities Commissioners General (EARACGs) meeting in Nairobi, the commissioners noted that establishment of a joint Intelligence and Surveillance Fusion Centre will help tackle smuggling which remains a challenge to revenue mobilization and societal safety.

    “While regional economies grew by 5.8pc in real terms or 14.5pc in nominal terms in FY 2023/224, tax revenue increased only13.3pc indicating that tax collection was not keeping pace with the economic growth,” said EARACG.

    According East Africa Revenue Authorities between October 2023 and April 2024 a total of Ksh 392 million ($3.04m) was realised in revenue from tax evasion investigations.

    EARACG called for policy measures including tax harmonisation to be expedited and administrative strategies such as uniform valuation, enforcement strategies and information sharing on exports be enhanced as stipulated by law.

    A the Tax Transparency in Africa 2022 report by the Global Forum, African countries lose an estimated $50-$80 billion from illicit financial inflows mostly through porous borders.

    “It was noted that revenue performance in the region continued to be negatively impacted by smuggling, increase in tax exemptions, expansion of the informal sector, cash economy and inadequate visibility of taxpayer transactions from both Customs and domestic revenue fronts,” the commissioners added in its final communiqué.

    The commissioners similarly agreed to advocate for rationalisation of tax expenditures for common benchmarking to address substantial revenue foregone through tax exemptions, explore and adopt Artificial Intelligence (AI) in revenue administration, continue to implement the digital service tax and consider the adaption of the significant economic presence taxation framework based on each country’s progress in taxation of the digital economy and operationalize the EAC Multilateral Double Taxation Agreement (DTA) by fast-tracking its ratification before submission to EAC for approval.

    Additionally, the commissioners agreed to speed up development of a common domestic tax system using internal expertise and the costs involved.

    The 52nd meeting was attended by revenue commissioner generals from Kenya, Tanzania, Uganda, Rwanda, Burundi, DRC, South Sudan, Somalia, Zanzibar and Malawi.

  • Cracking down on smuggling: DCI Chief calls for unified action in Trans Nzoia

    Cracking down on smuggling: DCI Chief calls for unified action in Trans Nzoia

    The Director of DCI, Mohamed Amin, has urged security agencies in Trans Nzoia County to enhance multi-agency cooperation to combat smuggling and cattle rustling effectively.

    Addressing various venues, including camps, posts, and stations hosting members of the National Police Service, Amin highlighted the infiltration of criminal cartels in the region.

    These cartels are disrupting the operations of the National Cereals & Produce Board (NCPB), hindering government efforts to bolster food security.

    “Criminal cartels operating in this county have penetrated the NCPB, smuggling subsidized fertilizer to neighbouring countries. This undermines our farmers’ productivity and sabotages government-led economic revival initiatives,” he emphasized.

    Amin urged security operators and customs officers from the Kenya Revenue Authority to intensify monitoring activities at the Suam border.

    He stressed the importance of enforcing laws governing the movement of goods and people across national borders.

    These statements were made by the DCI Chief during the commencement of his three-day working tour in the North Rift region, representing the Inspector General.

    This visit follows Amin’s assessment of the security situation in the region six weeks prior, aiming to address challenges faced by NPS officers in fulfilling their duties effectively.

    Beginning at the Suam Border Post linking Kenya and Uganda, Amin addressed officers at the Chepchoina GSU Camp, GSU Miti Mbili Camp, Anti-Stock Theft Unit ‘K’ Coy, and KPS, APS, and DCI officers stationed at Chepchoina and Endebes.

    Accompanying him were Director of Personnel Francis Ndiema, Director of Operations Richard Mwaura, RCIO Rift Valley Charles Mwangi Kanyuira, CCIO Trans Nzoia Francis Githinji Kihara, among others.