Mobile phones have emerged as the most frequently under-declared items arriving at Eldoret International Airport, which has become a key gateway for consolidated cargo brought in by small-scale traders largely importing goods from Dubai and China.
Undeclared imported goods mean items that have not been properly reported or declared to customs agencies upon import. They may include items that are completely hidden or simply have incorrect information, such as a lower value, in an effort to avoid paying duties or taxes.
The Kenya Revenue Authority (KRA) has reported repeat cases of traders attempting to disguise new mobile phones as refurbished ones in a bid to reduce the declared value and lower payable taxes.
“We have encountered several cases where traders classify both new and refurbished mobile phones under the same category. We can easily tell the difference because new phones cannot be treated as refurbished ones. The valuation is different, and that determines the correct taxes to be paid,” Abdi Malik Hussein, KRA’s Chief Manager for Customs and Border Control in the Rift Valley and North Rift region, said.
“Some mobile phone consignments arrive with unfamiliar brand names. Even after taxes are paid, agencies such as the Kenya Bureau of Standards (Kebs) and the Anti-Counterfeit Authority must verify that the products meet national requirements.”
The KRA bases its taxation on the customs value of imported goods, meaning that a new device attracts a higher duty than a used one because of the higher unit price. While tax rates remain constant, the total payable amount varies with declared value.
Importers of mobile phones into Kenya pay a duty of 25 percent, an excise tax of 10 percent on the customs value, and a 16 percent Value Added Tax (VAT) applied on the total of the customs value plus the import and excise duties.
They further pay an Import Declaration Fee at the rate of 2.5 percent and a Railway Development Levy at 2 percent of the customs value.
“These charges are standard for shipments that are transited across all ports of entry, including consignments through Jomo Kenyatta International Airport and containerised cargo through Port of Mombasa, to ensure fairness in taxation,” Mr Hussein said.
“When a trader misclassifies goods or undervalues them, it not only deprives the government of revenue but also gives an unfair advantage over other compliant importers.”
Mobile phones are followed by laptops and household goods like television sets, which KRA says traders usually misdeclare as personal items to evade import taxes.
“There are also cases of electronics like laptops coming in and people saying they are for personal use,” the KRA official said.
The bulk of shipments arriving through the Eldoret International Airport come as consolidated cargo — collections of goods belonging to multiple small traders packed together by freighters abroad.
Officials from the KRA and other agencies at the airport’s customs offices use a mix of scanning and physical verification to uncover undeclared or concealed goods.
“Consolidators may not always have a full list of what each trader has packed. At any given time, there could be an additional consignment loaded onto a shipment without being properly declared,” Mr Hussein explained.
“At the point of verification, we’re able to see that a particular consignment has not been declared. We then ensure it is properly recorded, relevant taxes are paid, and fines imposed where necessary.”
KRA is also increasingly intercepting shipments of restricted or unusual goods arriving through Eldoret, including sex toys, drones, toy guns, and telecommunication equipment disguised as regular electronics.
Drones, for instance, require approval from the Kenya Civil Aviation Authority (KCAA) before importation, while firearms or any imitation weapons, such as toy guns, can only be cleared by the National Police Service Firearms Bureau.
“These items are easily flagged during scanning. If detected, they are detained until the importer secures clearance from the appropriate agency,” Mr Hussein said.
The Eldoret International Airport handles 20-tonne and 50-tonne cargo aircraft, and customs verification depends on the size and volume of shipments. Smaller packages pass through scanners, while bulk cargo is subjected to full physical inspection.
“Some large consignments can’t fit through the scanner, so we do 100 percent physical verification,” said Mr Hussein. “For packages that can be scanned, we get a clear picture of what’s been imported before determining if further inspection is necessary.”
