Tax Evasion Scandal Rocks Eldoret Airport: Smugglers Sneak Millions in Smartphones Past Corrupt Officials

A major tax evasion scandal has erupted at Eldoret International Airport, where insiders and local dealers have exposed a smuggling racket involving millions of shillings worth of smartphones.

Corrupt officials are allegedly allowing importers to bypass taxes on consolidated smartphone shipments, costing the government billions in lost revenue.

The alarm was raised by industry players who revealed that only 10 to 20 percent of imported electronic goods, particularly high-end mobile phones like iPhones and Samsungs, are being declared and taxed. The rest are smuggled out, with insiders claiming officials charge as little as $10 per smartphone—far below the required levy. “This is corruption of the highest order,” one dealer said, demanding fairness and accountability.

The exposé prompted swift action from Kenya Revenue Authority (KRA) headquarters in Nairobi, with officials demanding explanations from Eldoret’s regional heads. Sources say a team has been dispatched to investigate claims that six airport staff members are facilitating the smuggling. Dealers reported a recent incident involving a 40-tonne cargo containing thousands of assorted smartphones that was smuggled out without duty payments. Two additional planes carrying over 45 tonnes of cargo reportedly arrived on Friday, raising further suspicions.

Importers who comply with tax regulations say they are being disadvantaged by the rampant corruption. They have petitioned KRA to probe the smuggling, which they claim involves goods valued at millions of shillings. The smuggled smartphones are allegedly transported to Nairobi’s Luthuli Avenue, where they are sold to unsuspecting buyers and suppliers.

The scandal follows a history of similar allegations at Eldoret Airport, where past probes led to staff reshuffles but failed to curb the problem. The government’s directive to route cargo planes through Eldoret to boost its viability has inadvertently made it a hub for tax evasion, insiders say. The smuggling network also extends to other entry points, including Namanga, Lungalunga, Taveta, Malaba, Busia borders, Mombasa port, and Jomo Kenyatta International Airport.

Further complicating the issue, smugglers reportedly pay just $8 per kilo of cargo instead of per piece, significantly undervaluing the goods. Four major companies have been implicated in the racket, which has led to substantial revenue losses as KRA struggles to meet collection targets. A probe into the allegations is ongoing, with dealers and insiders urging authorities to enforce stricter oversight and ensure equal treatment for all importers.