Kenya Revenue Authority (KRA) has impounded a large consignment of contraband cigarettes valued at Ksh281.1 million ($2.178 million) at the Port of Mombasa in a major operation targeting illicit trade at Kenya’s border ports.

KRA said in confirmation of the seizure involved over 9.3 million sticks of cigarettes concealed in a 40-foot container that was being illegally imported through the port.

“The interception followed actionable intelligence that led to the identification of a suspicious container at the Port of Mombasa,” KRA said in a statement.

Acting on the intelligence, agency convened a multi-agency verification team to examine the cargo. Given the nature of the goods, officers conducted a 100 per cent physical examination to ensure compliance with tax, standards and enforcement regulations.

“Due to the high risk associated with the consignment, a full physical examination was undertaken to establish compliance with applicable tax, quality and regulatory requirements,” the authority noted.

The operation brought together officers from the Kenya Revenue Authority, Port Police, Kenya Bureau of Standards (KEBS), Anti-Counterfeit Authority (ACA), Port Health Services and the Kenya Ports Authority (KPA).

The joint inspection confirmed that the 937 cartons contained 9,370,000 sticks of cigarettes. Although the cartons were labelled ‘Made in Sudan’, the country of consignment was listed as Cambodia, with the cargo routed through Singapore and Kenya and declared as being en route to South Sudan.

“The inconsistencies in the country of origin, routing, and labelling of the cigarettes raised serious concerns of declaration and attempted tax evasion,” KRA said in a statement.

According to the Authority, the total taxes payable on the seized goods amount to Ksh83.39 million ($646,189) comprising Ksh38.42 million in excise duty and Ksh44.98 million ($297,716) in value-added tax (VAT).

“This interception underscores KRA’s unwavering commitment to protecting national revenue, legitimate traders, and consumers from the effects of illicit trade,” the authority said.

KRA reiterated that it remains vigilant in strengthening border controls and working closely with other agencies to ensure fair market competition.

“We will continue to leverage intelligence-led operations and inter-agency collaboration to disrupt illegal trade networks and safeguard the country’s economic interests,” the statement added.

Investigations into the matter are ongoing, and enforcement action will be taken against those found culpable.

• A Tell Media / KNA report