A joint operation between the KRA Investigation Department and the Directorate of Criminal Investigations has led to the unravelling of a unique concealment trick employed by unscrupulous traders in an ethanol smuggling racket.
The intelligence-led operation that began on Sunday 25th August 2024 and dragged through to Wednesday led to the seizure of 40,971 litres of smuggled ethanol valued at KSh26.9 million concealed as imported molasses from a neighbouring country. Through the interception, tax loss of over KShs. 20.5 million was averted.
According to KRA, the ethanol was being transported to Limuru in two tanker trucks each carrying 17,766 litres and 23,205 litres which crossed into Kenya through the Lwakhakha border station between 19th and 24th August 2024.
“The main compartments of both tankers were filled with a total of only 2,720 litres of molasses while the rest included concealed compartments filled with ethanol,” the agency said.
In addition, “the valves of the tankers were constructed to drain molasses whereas the ethanol, being the bulk of the content, remained hidden and could only be drawn through pipes passed through the hidden compartments. The Molasses was used to conceal the ethanol.”
Who owns smuggled ethanol?
The investigation teams subjected the vehicles to scanning to ascertain the concealed compartments and later the contents were drawn for forensic tests to establish the chemical composition. The goods are currently detained at a KRA warehouse for further investigations and processing of suspects.
“Available information indicates that both trucks are owned by Isaac Muigai Kahugu,” KRA said.
One of the tanker drivers, Edward Nandwa Otundo, was arrested. The suspect is currently held at Capitol Hill Police Station while the driver and the owner of the other tanker and consignment are being pursued.
Unscrupulous traders employ various tricks to conceal the illicit ethanol, making it hard to detect. Last year alone, 60,000 litres of smuggled ethanol was impounded.
Ethanol smuggling and manufacturing of counterfeit alcoholic drinks creates unfair trade competition and poses health and safety risks to the citizenry. Smuggled ethanol is mainly used in the manufacture of cheap counterfeited alcoholic drinks.
In the spirit of a one-government approach in the fight against illicit trade, KRA calls upon all law enforcement agencies and the general public to join efforts by sharing intelligence reports to help dismantle these cartels for the wider public good.
