KRA probing how goods destined for South Sudan ended up in Ruiru amidst pursuit of tax evasion syndicate

KIAMBU,Kenya, Aug 17 – The Kenya Revenue Authority (KRA) is probing an incident where goods destined for export to South Sudan ended up in the open market in Ruiru in the latest series of tax evasion scandals.

According to KRA, the cache of goods, were seized by detectives in a warehouse within New Horizons Park in Ruiru, Kiambu County this past Friday.

The consignment stored in five containers are estimated to be worth Sh100 million consisting of electronic devices and car tires which would have denied KRA millions in taxes as well as flooding the local market with goods not certified by the Kenya Bureau of Standards (KEBS).

KRA Chief Investigating Officer Mutembei Nyaga told Shahidi News, a verification exercise on the goods has commenced while at the same time revealing that the goods were part of a consignment initially declared for export but later diverted to Ruiru as a scheme of evading taxes.

“This is huge tax evasion syndicate involving diversion of goods into the local market,” Said Nyagah further stating, “the verification of the goods is part of our investigations to establish the circumstances under which the goods that were destined for South Sudan found themselves in Ruiru,”

Preliminary investigations reveal detectives want to establish whether the owners of the goods or agents diverted the consignment to Ruiru.

“We will also conduct an audit on all individuals who will be apprehended on their previous business dealings to establish whether they have been evading paying taxes by disguising as exporters. They will be arraigned in court and charged with diversion of goods, tax evasion and any other charges that might arise as investigations continue,”

Business dealing in electronic goods and vehicle spare parts have been warned against unscrupulous individuals selling them goods that have not met KEBS standards.

Detectives from the DCI last week revealed that three people were arrested for diverting the consignment in a criminal network operating in Kiambu, Kajiado and Nairobi.

The suspects include; Joseph Njoroge,35, Mohamed Noor Sheikh,34 Josphat Gitau, 37 years old.

The goods were imported on July, 15, 2021 destined for South Sudan, according to the owner of the goods, Khadija Abdi Mohamud who reported the matter to police.