18 people arrested in Nairobi over cargo ‘dumping’ tax evasion scheme

According to a statement issued on Wednesday, KRA investigators conducted a covert operation by tracking a consignee named Kandama Kasongo Franchoise, a suspect who is alleged to have evaded taxes worth Ksh.21.9 million. 

According to KRA, the suspects conducted the scheme by misdeclaring goods meant to be used locally as transit goods with the intent to dump the goods locally without paying the taxes. 

In this operation, KRA officials discovered that a 40-foot container full of textiles loaded in Mombasa was declared as transit goods destined to the Democratic Republic of Congo for Kasongo. 

On Monday, March 10, KRA officials traced the truck driver, Meshack Leo, as he changed the truck's registration at the Machakos Junction and tampered with the electronic seal before heading to Nairobi. 

The 'transit goods' marks on the trailer were also erased as the vehicle made a u-turn in Mai Mahiu.

After tracking the trailer, the DCI officers pounced on the suspects in Eastleigh as they were offloading the goods worth Ksh.3.5 million in taxes. 

The truck driver and store owners Yusuf Mohammed Noor and Abdi Nasir, were among the 18 suspects arrested. 

"The truck/Trailer loaded with the said exhibits was escorted to a KRA customs warehouse for safe custody awaiting completion of investigations," the statement read in part.