Kenya Revenue Authority (KRA) has uncovered yet another vehicle number plate registration scam at the Mombasa port.
According to the taxman, hundreds of imported cars have been released without the mandatory National Transport and Safety Authority (NTSA) registration.
Vehicles imported into the country should automatically be allocated number plates and their details captured by NTSA before they leave the port.
However, officials at the port have been releasing the vehicles without due registration.
“It has come to our attention that the procedure for release of imported motor vehicles has not been implemented by release officers at the port.
Specifically, officers at the release gates have been allowing removal of private motor vehicles prior to registration by NTSA,” read a letter from Joseph Tonui, an investigation and enforcement manager at KRA.
According to Business Daily, dealers evade vehicle registration at the port to take advantage of high demand for the latest number plates in the second-hand car market.
“Please note that the possession and use of unregistered motor vehicles have recently been cited as a threat to public safety and the matter has drawn growing concerns from various security agencies,” the circular from Tonui read.
The unregistered vehicles deny KRA hundreds of millions of shillings in revenue when released into the market without being taxed.
Police last month raided NTSA’s headquarters and arrested several agency employees in connection with illegal registration of motor vehicles.
