The Kenya Revenue Authority (KRA) has foiled a scheme to defraud the government of Sh123 million in taxes through the irregular clearance of imported rice containers at the Port of Mombasa.

In a statement on Friday, KRA confirmed that the fraudulent operation involved the clearance of 161 rice containers at a Container Freight Station (CFS) between August 1 and August 23, 2025.

The tax evasion attempt was flagged during routine audit checks, which detected anomalies in the clearance process. KRA said its swift response helped recover the entire amount of revenue that was at risk.

“Through routine audit checks, we uncovered and stopped the irregular clearance of 161 rice containers at a Mombasa CFS. This fraudulent scheme would have cost Kenyans Sh123 million in lost revenue, but we successfully recovered the full amount at risk,” the Authority stated.

Following the discovery, KRA initiated a comprehensive investigation and is now working with the Ethics and Anti-Corruption Commission (EACC), the Directorate of Criminal Investigations (DCI), and other agencies to identify those involved.

“The Authority is collaborating closely with enforcement agencies to identify and hold accountable all individuals involved in the fraudulent scheme, including staff,” KRA added.

The Commissioner of Customs and Border Control stressed that the agency will not hesitate to act against anyone implicated in the scam, whether internal staff or external parties.

KRA reaffirmed its commitment to safeguarding public revenue, maintaining integrity, and ensuring accountability in tax administration.

Established under the Kenya Revenue Authority Act, Chapter 469, KRA is mandated to collect revenue on behalf of the Government of Kenya, advise on tax administration, and enforce compliance with revenue laws.