KRA Foils Ksh123 Million Tax Fraud in Mombasa

The Kenya Revenue Authority (KRA) has foiled an attempt to defraud the government of Ksh123 million in taxes through irregular clearance of 161 containers of rice at a Container Freight Station (CFS) in Mombasa.

In a statement on Friday, September 5, the authority said the clearances occurred between August 1 and August 23, 2025, but was detected during routine audit checks. 

KRA said the anomaly prompted immediate action, enabling it to recover the full amount of revenue that had been at risk of loss.

"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 Station (CFS) in Mombasa.

"The irregular clearance occurred between 1st August and 23rd August 2025. However, the anomaly was detected through routine audit checks, prompting immediate and decisive action by the Authority. KRA has since recovered the full amount of revenue that was at risk of loss," the statement read in part.

KRA disclosed that it has launched an investigation into the matter and is working with law enforcement agencies to identify and hold accountable all individuals involved in the fraudulent scheme.

"KRA has launched a comprehensive investigation into the matter and is collaborating closely with the Ethics and Anti-Corruption Commission (EACC), the Directorate of Criminal Investigations (DCI), and other relevant law enforcement agencies to identify and hold accountable all individuals involved in the fraudulent scheme including staff.

"The Authority remains steadfast in its commitment to eradicating corruption within its operations. The Authority assures the public that anyone found culpable, whether staff members or external parties, will face the full rigour of the law," the statement concluded.

This comes a month after KRA announced it collected Ksh13.2 billion in excise duty on betting services during the financial year 2024/2025, surpassing the set target of Ksh11.3 billion. 

In a statement on Tuesday, August 5, the authority noted that excise duty from betting services grew by Ksh2.6 billion from the last financial year.

"The Kenya Revenue Authority (KRA) has recorded an outstanding performance of 117.2% in Excise duty on betting services during the Financial Year (FY) 2024/2025, surpassing the set target of Ksh11.288 billion.

"Excise duty from betting services grew to Ksh13.233 Billion in the FY 2024/2025 from Ksh10.598 billion collected in the last financial year," the statement read in part.

KRA attributed the performance to KRA’s Taxation at Source initiatives, specifically, the integration of betting firms’ systems to KRA’s systems, enabling real-time monitoring of transactions.

According to the authority, the integration enhanced compliance and transparency and facilitated effective collection.

"The growth in revenue comes at a time when the nation continues to face economic pressure. According to the 2025 Economic Survey, Kenya’s economy grew by 4.7% in 2024, down from 5.7% in 2023, reflecting broader global slowdowns and local pressures on consumption and credit," the statement added.