KRA Blocks Ksh 123M Rice Tax Fraud in Mombasa

The Kenya Revenue Authority (KRA) has stopped a major tax fraud scheme that would have denied the country Ksh123 million in revenue.

In a statement released by KRA, the fraud involved 161 containers of rice that had been irregularly cleared through a Container Freight Station in Mombasa.

KRA said the scheme was uncovered during routine audit checks carried out in August. The rice containers were held before they could reach the local market, ensuring that the government did not lose money.

“This fraudulent scheme would have cost Kenyans Ksh123 million in lost revenue, but we successfully recovered the full amount at risk,” the statement read in part.

The attempted tax evasion has prompted an investigation to identify all the parties behind it. KRA has brought in the Directorate of Criminal Investigations and the Ethics and Anti-Corruption Commission to help with the probe. It has also promised firm action against any of its officers who may have been involved.

“The Authority assures the public that anyone found culpable, whether staff members or external parties, will face the full rigour of the law,” the statement read.

 The Authority says it will continue carrying out strict audits, monitoring import flows, and sealing gaps that could allow fraudulent deals to slip through.

KRA also stressed its commitment to protecting taxpayers’ money and safeguarding the economy.

“We remain steadfast in safeguarding taxes, upholding integrity, and eradicating corruption in revenue administration,” the statement added.

The recovery of Ksh 123 million strengthens KRA’s wider campaign to improve tax compliance and close revenue leakages.