Nairobi

KRA Intercepts Ksh16.26 Million Ethanol Haul Near Standard Gauge Railway in Nairobi

Tax authorities have confiscated a substantial quantity of illegal ethanol valued at Ksh16.26 million during an enforcement operation conducted near Nairobi’s Standard Gauge Railway corridor.

The Kenya Revenue Authority (KRA) launched the operation after receiving intelligence reports indicating suspicious movement of unauthorized ethanol in the vicinity. Officers from the KRA Enforcement Team in Nairobi responded to information that several lorries transporting ethanol had been spotted at a yard adjacent to the SGR corridor.

Although the lorries had departed by the time enforcement officers arrived at the location, the team successfully recovered the contraband that had been unloaded and concealed within the premises. The haul comprised 20 industrial drums, each containing 250 litres, bringing the total volume to 5,000 litres of ethanol.

Authorities also impounded a Toyota Fielder vehicle suspected of being operated by individuals connected to the illegal operation. Examination of the vehicle revealed it had been equipped with specialized devices believed to be tracking system jammers, indicating sophisticated efforts to avoid detection by law enforcement agencies.

According to KRA assessments, the confiscated ethanol possessed significant market potential. If processed and distributed commercially, the quantity could have yielded approximately 48,200 bottles with a retail value of Ksh14.46 million. The seized vehicle adds Ksh1.8 million to the total value of the operation.

“Preliminary assessments estimate that the seized ethanol, if compounded and released into the market, would have yielded approximately 48,200 bottles, with an estimated market value of Ksh14.46 million. The motor vehicle is valued at Ksh1.8 million, bringing the total value of goods seized to Ksh16.26 million,” KRA stated.

The tax authority’s analysis further revealed that the government stood to lose Ksh7.42 million in potential tax revenue had the ethanol reached consumers. This figure includes Ksh2.6 million in Value Added Tax and Ksh4.82 million in excise duty.

All confiscated items, including the ethanol and the motor vehicle, have been transferred to a KRA warehouse pending completion of investigations.

This operation follows a similar enforcement action conducted by KRA in October 2025, which resulted in the seizure of contraband goods worth Ksh3.9 million around Lake Victoria. That crackdown enabled the recovery of Ksh1.6 million in revenue, primarily from small-scale traders attempting to smuggle merchandise through lake routes.