Kenya's Revenue Authority (KRA) has intensified scrutiny of cargo imports following renewed debate over proposed phone taxes. KRA Board Chairperson Ndiritu Muriithi defended the proposed tax, citing concerns that large importers exploit shared shipping containers to bring high-value mobile phones into the country without paying required duties.
The KRA has introduced stricter documentation requirements for individual importers using shared containers, aiming to prevent tax evasion. Muriithi argued that consolidated cargo arrangements allow importers to bypass tax obligations, undermining revenue collection. The move follows reports of increased smuggling of high-value electronics through informal channels.
This policy shift comes amid growing pressure on the KRA to improve tax compliance. In 2025, the agency reported a 12% increase in unregistered imports, primarily in electronics and luxury goods. The new rules require importers to provide detailed manifests for each container, with penalties for non-compliance.
The phone tax proposal, which has been under review since 2024, aims to generate additional revenue from the booming mobile phone market. Critics argue the tax could increase costs for consumers and small businesses. The KRA has not yet announced a final decision on the tax, but the tightened cargo controls signal a broader effort to strengthen customs enforcement.
The policy follows a 2023 audit that revealed significant discrepancies in import declarations, prompting calls for stricter oversight. With rising inflation and a growing informal economy, the KRA faces challenges in balancing revenue collection with economic growth. The new measures are expected to take effect by early 2027.
