KRA investigation team supported by the Directorate of Criminal Investigations – Operations Support Unit conducted a sting operation to disrupt and arrest key suspects involved in the diversion and smuggling of high-end transit motorcycles in a tax evasion scheme.
The operation, which involved tracking of the diverted goods for recovery, led to the interrogation of a Nairobi-based businessman Mr. Shivam Vinayak, the main suspect in the scheme. Mr Vinayak facilitated the importation of Seventeen (17) new KTM motorcycles from South Africa which he declared as transit goods to Uganda before they were deliberately diverted and smuggled into the country.
The consignment entered the country through the Loitoktok One Stop Border Post, (OSBP) in March and was diverted from the gazetted transit route to a store in Spring Valley, Westlands, Nairobi. Sixteen motorcycles on board the transit truck were then offloaded and thereafter allowed to proceed to the Busia border with only one motorcycle, to deceive the Customs officers at the border station.
The smugglers also attempted to interfere with the cargo tracking system to avoid detection of their activities. So far, eleven motorcycles have been recovered, and the joint investigation team tracking the remaining six.
To divert, smuggle, or otherwise handle uncustomed motorcycles or any other goods is a punishable offense under Section 200(d)(iii) of the East African Community Customs Management Act 2004. All goods imported for use in Kenya must undergo proper Customs clearance before use, sale, or handling.
KRA continues to undertake comprehensive investigations into other cases of smuggling, handling of uncustomed goods, illicit trade activities, and other tax offenses to prosecute all offenders and enhance tax compliance.
