KRA impounds ethanol worth Shs 55 Million tax

NAIROBI, Kenya, Sept 8 – The Kenya Revenue Authority (KRA) have impounded 631 drums with over 157,000 litres of ethanol at a go-down located in Viken Thirty Industrial Park along with Eastern by-pass Nairobi County.

The goods, which were intercepted on 7th September 2021, have an estimated tax value of Kshs. 55,014,173.

The operation happened after KRA officers received intelligence that the go-down was suspected to be storing drums of liquid suspected to be ethanol. Customs Investigations and Revenue Protection Service officers from KRA rushed to the scene and with the assistance of DCI Officers conducted a full verification of the goods to confirm the description and quantities stored in the go-down.

Two suspects were found inside the go-down namely Martin Nganga Mwangi and Julius Njoroge Mburu were arrested. The suspects will be arraigned in court once investigations are completed.

Being in possession of uncustomed goods is a violation of law under Section 200 (d) (iii) as read with section 210 (c) of The East African Community Customs Management Act (EACCMA), 2004.

Punishment upon conviction for the offense is imprisonment for a term not exceeding five years or to a fine equal to fifty per cent of the dutiable value of the goods involved, or both. The goods, in respect of which such an offense has been committed, shall be liable to forfeiture.

Commissioner in charge of Investigations and Enforcement, Dr. Edward Karanja has applauded the collaboration with other government security agencies and vowed to continue to be vigilant at all ports of entry to curb trade in illicit goods and other transnational economic crimes.

Taxpayers are encouraged to pay their taxes and remain compliant with tax laws in order to avoid punitive enforcement measures including prosecution and forfeiture of vehicles conveying Uncustomed goods. KRA is building taxpayers’ trust through facilitation to compliance and endeavors to make the taxpaying experience better through the provision of courteous and professional service.

KRA appeals to members of the public to continue providing information on tax malpractices in order to grow the revenue base for a better economic future for the nation.