What happened

KRA officials carried out a seizure at Jomo Kenyatta International Airport (JKIA) that resulted in the confiscation of 52 refurbished mobile phones and three unmanned aerial vehicles, commonly known as drones. The operation was reported by The Star, Kenya, and highlights the revenue authority's ongoing crackdown on undeclared or improperly valued electronic imports. The phones and drones were intercepted during routine cargo checks, and KRA has taken steps to assess any tax liabilities associated with the goods.

Context and background

Kenya Revenue Authority (KRA) is mandated to collect customs duties, import levies and value‑added tax (VAT) on goods entering the country. Over the past few years, the agency has intensified inspections at JKIA, Kenya's main gateway for air freight, in response to rising concerns about under‑declaration of high‑value electronic items. Refurbished phones, in particular, have become popular among Kenyan consumers because of their lower price points compared with brand‑new devices, but they also present a compliance challenge for customs officials who must verify the declared value against market rates.

The three drones seized are also noteworthy because Kenya introduced specific regulations for unmanned aerial systems in 2020, requiring operators to obtain permits and pay applicable duties. The drones intercepted at JKIA appear to have been imported without the necessary clearance, prompting KRA to act in line with the Aviation Authority’s guidelines. While the exact origin of the phones and drones was not disclosed, similar seizures in the past have involved shipments from East Asian manufacturers, where bulk imports of refurbished electronics are common.

Prior to this incident, KRA announced a series of training programmes for customs officers to improve detection of counterfeit and under‑valued electronics. The authority also launched an online portal that allows importers to pre‑declare cargo details, aiming to reduce delays and increase transparency. Despite these measures, the seizure demonstrates that gaps remain, especially for smaller importers who may lack sophisticated documentation or who attempt to sidestep duties by misclassifying goods.

Compared with what is normal

Seizures of electronic goods at JKIA are not unprecedented, but the scale of this particular operation is larger than the average monthly confiscations recorded by KRA. Historically, the revenue authority reports an average of 10–15 phones and one drone per month during routine checks. The recent haul of 52 phones represents a more than three‑fold increase, suggesting either a spike in illicit shipments or improved detection capabilities.

  • Typical customs duty on new mobile phones ranges from 25% to 30% of the declared value, plus 16% VAT.
  • Refurbished phones are assessed at a lower rate, but KRA still expects accurate valuation based on market benchmarks.
  • Drone imports normally attract a 20% duty and 16% VAT, along with a licensing fee under the Civil Aviation Authority.
  • In the last fiscal year, KRA recorded roughly Sh200 million in revenue from electronic imports; a surge in undeclared shipments could erode this figure.
Why it matters

For Kenyan SMEs that rely on importing electronic devices, the seizure sends a clear signal that KRA is tightening oversight and will pursue revenue that may have been previously missed. Undeclared or under‑valued imports can lead to penalties, including fines up to three times the duty owed, seizure of goods, and possible criminal prosecution for repeat offenders. Moreover, the incident underscores the importance of complying with both customs and aviation regulations, especially for emerging sectors such as drone‑based services, which are gaining traction in agriculture, surveying and logistics.

Beyond the immediate financial impact, the event may affect supply chains. Importers who previously relied on informal channels might face longer clearance times as KRA allocates more resources to inspections. This could translate into higher inventory costs for retailers and service providers who depend on a steady flow of refurbished phones to meet consumer demand. On the other hand, strict enforcement could level the playing field for businesses that adhere to formal procedures, encouraging fair competition.

Practical steps
  • Review all import documentation to ensure the declared value matches current market prices for refurbished phones and drones.
  • Register your shipments on KRA’s online pre‑declaration portal and keep electronic copies of invoices, packing lists and permits.
  • If importing drones, obtain the required Civil Aviation Authority license before shipment and attach the permit to your customs declaration.
  • Consider engaging a licensed customs broker who can verify tariff classifications and advise on applicable duties and VAT.
  • Set up internal controls to track import costs and reconcile them with tax filings, reducing the risk of accidental under‑declaration.

Tax Planning & Compliance services at Beavoren Ventures can help your business navigate customs duties, VAT obligations and licensing requirements for electronic imports, ensuring you stay compliant while optimizing tax liabilities.

Need help with compliance? Email info@beavorenventures.co.ke or call +254 716 296 857.

Disclaimer: This article is informational and does not constitute formal tax, audit or legal advice. For guidance specific to your circumstances, please contact Beavoren Ventures.