The Kenya Revenue Authority (KRA) has successfully thwarted attempts to defraud the government of Ksh 123 million in an attempted tax fraud.

In a statement on Friday, September 5, KRA said the attempt was concealed in the irregular clearance of 161 containers of rice at one of the Container Freight Stations (CFS) in Mombasa.

According to the taxman, the irregular clearance occurred between 1st August and 23rd August 2025.

“Kenya Revenue Authority (KRA) has successfully averted an attempt to defraud the government of Ksh 123 million in taxes through irregular clearance of 161 containers of rice at one of the Container Freight Station (CFS) in Mombasa,” read the notice in part.

“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.”

KRA stated that it 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 rigor of the law,” the authority noted.

This comes after the tax man in July this year surpassed the revenue target of Ksh 2.555 trillion for the Financial Year 2024/2025 after collecting Ksh 2.571 trillion.

The performance was a growth of 6.8% and a performance rate of 100.6%, compared with the Ksh 2.407 trillion collected in the last financial year.

At the same time, KRA collected Ksh 248.276 billion on behalf of other government agencies, surpassing the target by Ksh 40.465 billion. This translated to a performance rate of 119.5%. 

Domestic Revenues registered a growth of 4.8% after KRA collected Ksh 1.688 trillion against a target of Ksh 1.721 trillion. This translates to a performance rate of 98.1%.

Customs Revenue recorded a performance rate of 105.9% with a collection of Ksh 879.329 billion against the target of Ksh 830.368 billion. This translates to a revenue growth of 11.1%, compared to the same period in FY 2023/2024.

Domestic VAT collection stood at Ksh 327.336 billion, reflecting a growth of 4.2% compared to the previous year. In the first half of the financial year, KRA collected Ksh 148.374 billion.

In the second half of the year, KRA implemented a raft of VAT compliance initiatives to seal revenue loopholes, enabling the collection of Ksh178.962 billion. 

KRA collected Ksh 560.963 billion from P.A.Y.E, signifying a growth of 3.3%. Despite the slow growth, the tax head recorded a performance rate of 99.0%. 

The tax head recorded a performance rate of 97.2%, with a collection of Ksh 69.385 billion. 

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