KRA Recovers Ksh123 Million From Company in Tax Fraud Scheme Over Rice Import Clearance

KRA Offices
KRA offices along Samia Park, Nairobi, May 20, 2025.
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KRA

The Kenya Revenue Authority (KRA) has recovered Ksh123 million from a company in a tax fraud scheme involving the irregular clearance of rice containers at a container freight station in Mombasa.

In a statement released on Friday, September 5, KRA said the fraud happened between August 1 and August 23, 2025. 

The authority revealed that the fraud involved 161 containers of rice that were cleared without following proper procedures.

“Kenya Revenue Authority (KRA) has successfully averted an attempt to defraud the government of Ksh123 million in taxes through irregular clearance of 161 containers of rice at one of the Container Freight Stations (CFS) in Mombasa,” KRA said.

Containers at Mombasa Port.
Containers at Mombasa Port.
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KPA

The authority stated that the anomaly was detected during routine audit checks, prompting the KRA to take immediate and decisive action.

The agency confirmed that the full amount of revenue at risk has since been recovered.

KRA also revealed that a multi-agency team has begun a thorough investigation into the fraud.

“We are working closely with the Ethics and Anti-Corruption Commission (EACC), the Directorate of Criminal Investigations (DCI), and other law enforcement agencies to identify and hold accountable all individuals involved in the fraudulent scheme, including staff,” the statement read.

The authority stressed its commitment to fighting corruption within its operations.

“Anyone found culpable, whether staff members or external parties, will face the full rigour of the law,” KRA warned.

The Commissioner of Customs and Border Control, Lilian Nyawanda, assured Kenyans that the agency will continue to protect public revenue.

 “KRA remains steadfast in its mandate to seal revenue leakages and to ensure integrity in tax administration,” the commissioner said.

The Times Tower housing the KRA offices in Nairobi.
KRA offices in Nairobi.
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Kenya Insights
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