The Kenya Revenue Authority (KRA) has announced the successful recovery of Ksh 123 million in taxes following the detection of a sophisticated fraud scheme involving the irregular clearance of 161 rice containers at a Mombasa-based Container Freight Station (CFS).

The authority revealed that the fraudulent clearances occurred between August 1 and August 23, 2025, before being uncovered through routine audit checks.

Immediate intervention by KRA officials prevented the substantial revenue loss, with the full amount now recovered.

In a press statement issued Friday, the tax agency confirmed it has launched a comprehensive investigation in collaboration with the Ethics and Anti-Corruption Commission (EACC) and the Directorate of Criminal Investigations (DCI).

The multi-agency team is working to identify all parties involved in the scheme, including any KRA staff members who may have facilitated the fraud.

Commissioner of Customs and Border Control emphasised the authority’s zero-tolerance policy toward corruption, stating: “The Authority remains steadfast in its commitment to eradicating corruption within its operations. Anyone found culpable, whether staff members or external parties, will face the full rigour of the law.”

This incident marks one of the largest detected tax fraud cases involving food commodities this year and highlights ongoing challenges in port operations.

The KRA has reassured the public of its continued vigilance in protecting government revenue through enhanced monitoring systems at all entry points.

Investigations are ongoing, with several suspects expected to be charged in the coming weeks.

On Monday, August 11, the High Court in Kerugoya issued a conservatory order stopping the planned importation of 500,000 metric tonnes of rice until a petition by the Farmers Party was heard and determined.

Justice Edward Muriithi’s order suspends a directive by Treasury CS John Mbadi and Agriculture CS Mutahi Kagwe—published in Gazette Notice No. 10353 on July 28, 2025—allowing the rice to be imported duty-free.

The Farmers Party argued the move would harm local farmers and the agricultural sector, especially with large stocks already held at Mwea Rice Growers Multi-Purpose Cooperative Society stores.

Justice Muriithi, terming the case urgent, ordered the respondents to be served ahead of a hearing that was scheduled for Thursday, August 14, 2025.