KRA recovers KSh123 M in rice import fraud; probe launched

Mombasa, Kenya — 2025-09-05 EAT.

KRA recovered KSh123 million lost through irregular clearance of 161 rice containers at a Mombasa freight station and launched a multi-agency probe.

The Latest

• Between 1 and 23 August 2025, 161 rice containers were cleared without proper duty through a Mombasa CFS. The fraud was uncovered during routine audits. Status: confirmed and resolved by 2025-09-05. 

• KRA secured full recovery of KSh123 million in owed tax following the discovery. 

• A joint investigation has been launched with EACC, DCI, and other agencies. Staff collusion is under scrutiny, with legal accountability pledged. 

Context in Brief

• Routine audits remain critical in detecting customs fraud, especially in vital import corridors like Mombasa. 

• The incident raises concerns over internal controls and oversight within KRA’s Customs and Border Control operations.

Law, Policy, and Process

• Constitution/Acts: Under the Kenya Revenue Authority Act, KRA is mandated to collect revenue and prevent loss through fraud or negligence.

• Mandates: Audits, detection, and inter-agency collaboration for fraud control are statutory obligations.

• Next steps: Strengthen oversight mechanisms, enforce accountability, and close gaps in customs procedures.

Voices and Stakeholders

• KRA (Commissioner of Customs & Border Control): Highlighted swift recovery and cooperation with anti-corruption agencies. “Anyone found culpable… will face the full rigour of the law.” 

• No quoted statements from EACC or DCI yet.

• Public and trade analysts expect intensified focus on internal KRA governance.

Evidence & Data

• Containers involved: 161. 

• Amount recovered: KSh123 million. 

• Timeline:

  • Aug 1–23, 2025: Fraud took place.

  • Sept 5, 2025: Recovery completed and probe announced.

 

Risks and Implications

• Economy: Prevents revenue leakages essential for public services.

• Governance: Exposes vulnerabilities in customs clearance systems; demands reform.

• Trust: Recovery reinforces public confidence but calls for structural change.

What We Don’t Know Yet

• Identities of those involved and any institutional safeguards that failed.

• Whether reforms or whistleblower mechanisms will be announced.

• Timeline for prosecution or staff discipline.

• Broader impact on import clearance protocols across other goods.

Timeline

• 2025-08-01 to 2025-08-23: Irregular clearance of rice containers. 

• 2025-09-05: Full recovery of KSh123 million; probe launched. 

What to Watch

• Publication of probe findings and accountability measures.

• Reforms in customs clearance processes and audit frequency.

• Introduction of whistleblower channels within KRA.

• Deterrent effect on future import fraud.