KRA Records 256.7% Jump in Tax Revenue at Kisumu Port Amid Crackdown on Illicit Trade

Kenya, 30 October 2025 - The Kenya Revenue Authority (KRA) has reported a remarkable 256.7 percent increase in tax collections at the Kisumu Port, signaling major gains from enhanced surveillance, improved border management, and targeted crackdowns on illicit trade across Lake Victoria.

According to the tax agency, collections at the port rose to KSh 107 million in the 2024/25 financial year, up from KSh 30 million in the previous period a record performance credited to new enforcement strategies by KRA’s Marine Unit.

Between May and August 2025, the port handled approximately 4,600 metric tonnes of sugar imports, generating over KSh 170 million in taxes and duties. Officials say this demonstrates the port’s growing role as a key customs hub for western Kenya and the wider Great Lakes region.

KRA noted that the Marine Unit has deployed additional personnel and surveillance equipment, including patrol boats and cargo inspection systems, to monitor Kenya’s territorial waters on Lake Victoria.

These measures have disrupted illegal supply chains and curbed the movement of uncustomed goods through unauthorised entry points along the lake’s vast shoreline.

“Enhanced marine patrols and closure of key tax loopholes have significantly reduced illicit cross-border trade while promoting legitimate commerce through proper customs channels,” said Dominic Kengara, KRA’s Chief Manager for Customs in the Western Region.

He added that the most commonly intercepted goods include illicit alcohol, timber, livestock, and sugar, often ferried in small boats across the lake to evade taxes.

In the 2023/24 financial year, KRA’s Marine Unit intercepted uncustomed and prohibited goods valued at KS h3.19 million, recovering KSh 1.6 million in lost revenue from the operations.

These efforts, Kengara said, reflect the agency’s continued resolve to tighten border controls and protect Kenya’s tax base.

Beyond enforcement, Kisumu Port is also emerging as a strategic trade and logistics hub for the region.

The facility has recorded steady growth in exports of petroleum products, ceramic tiles, wheat, and fertiliser, facilitated by streamlined clearance procedures and improved coordination between customs officers and port operators.

Kengara noted that the increased use of marine clearance has also helped to decongest the Busia and Malaba One Stop Border Posts, reducing delays for traders and transporters.

He explained that a single vessel carrying petroleum products through Kisumu Port is equivalent to 135 trucks that would otherwise travel by road, saving time, lowering logistics costs and easing pressure on road infrastructure.

The authority said these developments underscore the government’s broader efforts to revitalise Lake Victoria’s blue economy and position Kisumu as a key gateway for regional trade.

By combining tighter security, modern customs processes, and collaboration with local enforcement agencies, KRA hopes to sustain the upward momentum in revenue collection while encouraging lawful business across Kenya’s borders.