KRA Seizes 9.3 Million Contraband Cigarettes Worth KSh281 Million at Port of Mombasa

By benadeta mwaura - Reporter

Kenya, January 16 2026 - The Kenya Revenue Authority (KRA) has intercepted a major consignment of contraband cigarettes valued at KSh281.1 million at the Port of Mombasa, authorities announced on Friday. The haul included 9.37 million sticks of illicit cigarettes concealed in a 40-foot container, an attempt to bring untaxed tobacco into the Kenyan and regional markets.

KRA said the seizure was the result of intelligence-led investigations and involved a multi- agency verification team, including officers from KRA, the Port Police, Kenya Bureau of Standards (KEBS), Anti-Counterfeit Authority (ACA), Port Health Services and Kenya Ports Authority (KPA). A 100 % physical examination of the container was conducted to ensure compliance with tax, standards and enforcement regulations.

Inspectors found 937 cartons containing the cigarettes, which were labelled “Made in Sudan” despite documentation showing the consignment originated from Cambodia and was routed through Singapore before arriving in Kenya. The shipment was reportedly destined for South Sudan.

KRA said the unpaid taxes on the contraband cigarettes, including excise duty and value-added tax (VAT), totalled about KSh83.4 million, KSh38.4 million in excise and KSh44.9 million in VAT. The authority stressed that interceptions like this are part of ongoing efforts to protect national revenue and safeguard fair competition for legitimate traders.

“This interception underscores KRA’s unwavering commitment to border control and its mandate to protect society and legitimate traders from illicit trade,” said a senior KRA official. Illicit tobacco trade not only deprives the government of revenue but also undermines public health and supports organised smuggling networks.

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Kenya has long battled the scourge of illicit cigarette trade. Research shows that more than one in three cigarettes sold in the Kenyan market are unregulated and evade taxation, contributing to annual government revenue losses estimated at over KSh9 billion. This trend also fuels organised smuggling and threatens domestic jobs and legitimate businesses.

Local enforcement agencies, including KRA and ACA, have increasingly partnered with international and regional counterparts to tighten surveillance and tax compliance at entry points such as the Port of Mombasa and border crossings. Recent operations have also seen seizures of contraband cigarettes in smaller consignments worth tens of millions of shillings.

Contraband cigarettes pose several challenges for Kenya: Governments miss out on significant tax income essential for public services, Smuggled products undercut legal manufacturers and traders, affecting local industry while Illicit tobacco is often unregulated, may contain harmful substances and escapes health inspections.

Kenya’s crackdown on smuggling reflects a broader mandate to enforce customs and excise laws, protect national revenue and public health, and ensure a level playing field for compliant businesses. Authorities urge the public and industry players to report suspicious consignments and cooperate in the fight against illicit trade.