Police Arrest 18 Suspects in Eastleigh Crackdown Over Tax Evasion Scheme
The Directorate of Criminal Investigations (DCI) has arrested 18 individuals in Eastleigh, Nairobi, after they were caught offloading goods that had been falsely declared for export.
The arrests took place on Monday evening at a godown, where detectives found the suspects unloading a consignment of fabrics that was supposed to be in transit from the Port of Mombasa to the Democratic Republic of Congo (DRC).
In a statement released on Tuesday, DCI revealed that the operation was part of an ongoing investigation into organized tax fraud.
According to detectives, the arrested individuals were part of a criminal network that colluded with corrupt government officials to manipulate shipping records, allowing them to divert goods meant for export into the local market.
How the Scheme Worked
DCI disclosed that the criminals had devised a strategy to evade taxes by changing the number plates of trailers transporting the cargo and tampering with the Regional Electronic Cargo Tracking System (RECTS).
The fraudulent operation was aimed at bypassing customs inspections and smuggling goods into Kenya’s local markets without paying the required duties.
“In a blatant display of impunity and collusion with rogue government officials, the trailer carrying the fabrics was seen changing its original registration plates at the Machakos Junction,” DCI stated. “At the same time, the criminals tampered with the RECTS tracking system before proceeding towards Nairobi.”
To further conceal the vehicle’s true identity, the perpetrators went as far as decorating the trailer with stickers to mislead authorities.
Detectives Catch Suspects in the Act
The long-running investigation led detectives to closely monitor the activities of the suspects. The breakthrough came when the trailer entered a parking yard in Eastleigh, where the criminals began offloading the shipment. Acting on intelligence, the detectives moved in and arrested 18 people on the spot.
Authorities further revealed that this was not the first time the syndicate had pulled off such a scheme.
Investigations showed that the same group had previously diverted at least five trucks carrying similar consignments, all destined for DRC.
Each of these trucks was linked to a Congolese businessman suspected of being the mastermind behind the smuggling operation.
KRA Investigating the Tax Evasion Cartel
The Kenya Revenue Authority (KRA) has also been tracking the activities of this criminal network, as their illegal dealings have resulted in significant tax losses for the government.
Detectives believe the cartel has mastered the art of bribing RECTS officers who monitor the electronic tracking system along the transit routes.
These compromised officials either ignore alerts triggered by the tampering of cargo seals or actively assist in covering up the fraudulent activities.
“It is suspected that the criminals are part of a larger organized syndicate that has been illegally diverting goods in transit,” DCI said.
“They have perfected their methods by bribing officials tasked with monitoring the RECTS system and those stationed along the transit corridor to respond to alerts when tracking seals are interfered with.”
Impact on Government Revenue
This smuggling operation poses a major financial threat to the country, as textiles are subject to high taxation rates. By illegally diverting the cargo into Kenya’s local market, the criminals avoid paying these taxes, leading to massive losses in government revenue.
Authorities are now intensifying investigations into the syndicate and tracking down other individuals who may be involved in the scheme.
Meanwhile, the arrested suspects are expected to face charges related to tax evasion, smuggling, and conspiracy to commit fraud.
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