KRA Seizes 1,050 Bags of Smuggled Sugar in Lodwar and Kakamega, Puts KSh12.7 Million in Taxes at Risk

Kenya Revenue Authority (KRA) has seized approximately 46 tonnes of uncustomed sugar in Lodwar, Turkana County, in an intelligence-led operation targeting the illicit movement of sugar through Kenya’s border corridors.

The operation, conducted by KRA’s Investigation and Enforcement Team at about 2:00 a.m. yesterday, resulted in the interception of two lorries carrying a combined 920 bags of sugar, each weighing 50 kilogrammes. The consignment has an estimated tax implication of approximately KSh9.73 million, representing revenue that could have been lost had the goods entered the market.

The two lorries were each carrying approximately 460 bags of sugar. Upon verification, the consignment was identified as KALIRO-branded sugar.

 Preliminary investigations indicate that the sugar had been smuggled into Kenya from Moroto, Uganda, through Nadapal, without payment of the applicable taxes and without undergoing the required customs procedures.

The seizure is part of KRA’s ongoing efforts to disrupt networks involved in the illicit movement of sugar, protect public health, government revenue and safeguard compliant businesses from unfair competition created by smuggled goods.

In a separate operation in Kakamega County, KRA Enforcement officers intercepted a Probox motor vehicle carrying 30 bags of brown sugar, each weighing 50 kilogrammes. The consignment, valued at approximately KSh1.524 million, was seized and the vehicle escorted to Matungu Police Station, where the vehicle and the exhibits were detained.

In another operation in the same area, KRA officers intercepted a lorry suspected of transporting smuggled sugar following a pursuit along Mumias Road in Matungu, Kakamega County. The vehicle had been flagged down for a compliance check but the driver failed to stop, prompting officers to pursue it.

The driver and two other occupants subsequently abandoned the vehicle and fled on foot. Police officers managed to apprehend one of the suspects, who was taken into custody to assist with investigations.

An inspection of the abandoned lorry established that it was carrying 100 bags of sugar, each weighing 50 kilogrammes. The consignment has an estimated value of KSh500,000, with taxes at risk amounting to approximately KSh3,002,500.

The three interceptions demonstrate KRA’s continued use of intelligence-led enforcement to disrupt the illicit movement of goods and protect Kenya’s tax base. The Authority is strengthening surveillance and enforcement along border routes and other corridors vulnerable to smuggling, particularly those used to move high-demand commodities such as sugar.

KRA is also implementing measures to enhance compliance and protect legitimate trade following changes to the taxation of imported sugar under the Finance Act, 2026. The applicable excise duty on imported sugar is KSh40 per kilogramme. Further, a punitive charge of Ksh 460 or 100 per cent, whichever is higher, is charged for any illegal sugar seized.

KRA cautioned individuals and businesses involved in the transportation, distribution and sale of uncustomed goods that such activities are illegal and may result in the seizure of the goods and conveyances, financial penalties and prosecution in accordance with the law.

The Authority further urged members of the public to report suspected cases of smuggling and tax evasion through KRA’s established reporting channels. Public support and timely sharing of information remain critical in disrupting smuggling networks, protecting government revenue and promoting a level playing field for compliant businesses.

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