Unscrupulous traders attempting to abuse the amnesty on clearance of goods

Several importers at JKIA caught up in a tax evasion syndicate are attempting to exploit the amnesty granted by President Uhuru Kenyatta to small traders who had their goods detained at the ports of entry, including the Inland Container Deport (ICD).

The Kenya Revenue Authority (KRA) through an intelligence-led operation, has broken into a racket used by importers or their clearing agents to dodge paying proper taxes for Consignments coming through JKIA. 

The scheme is said to involve massive false declaration, concealment, undervaluation and forgery of import documents.

According to sources within KRA, activities of about seven companies might have occasioned loss of Sh75 million in just 11 customs declarations.

In one incidence an importer is said to have fraudulently declared a consignment as carrying only 2,500 mobile phones, while upon verification, the actual quantity was found to be 55,593 mobile phones. Consequently, KRA has demanded an additional Sh8.5 million.

In a separate incident, some importers are seeking to clear ethanol that was irregularly imported and which has been detained at the port awaiting destruction. 

The matter has been handed over to the DCI for investigation in line with the President’s directive regarding those involved in criminal activities.

The President had clarified that the amnesty would not apply to criminal activities and emphasised that those engaging in such conduct should be prosecuted.

It is yet to be seen how KRA will handle this agitation by criminal networks seeking to exploit the President’s goodwill to the small traders.

So far, only 201 containers belonging to small-scale traders have been released from the Embakasi ICD following the presidential directive to clear them within three weeks issued in May.

State House spokesperson Kanze Dena said the President was keenly tracking the process of releasing the containers.

“Originally, we had been told there were only 1,000 containers. However, right now what has been brought forth by the small traders is 676 containers. Of the 676 containers, approximately over 200 have been cleared,” she added.

She said the delays were caused by some of the containers being undeclared, with one being owned by even up to 30 traders.

Up to 84 of the containers had banned edible oil, deemed unfit for human consumption.

The Kenya Bureau of Standards (KEBS) has introduced requirements that might further complicate the process of clearing cargo that has been held at the port for months.

The standards’ body, in a statement yesterday, said all consolidated cargo would have to be opened up for fresh inspection.

"Traders whose containers appear in the list forwarded to KRA/KEBS to present themselves to initiate inspection," it read.