National studies indicate that counterfeit and illicit trade costs Kenya an estimated Sh153 billion annually in lost tax revenue and contributes to the loss of over 40,000 jobs.
A series of fresh seizures of consignments of sugar and cooking oil have confirmed relentless smuggling activities on the 600-kilometre Kenyan coastline, raising concerns of revenue losses and health risks.
The smuggling is particularly rife through illegal routes to Tanzania and Somalia, turning the spotlight on security and tax enforcement agencies amid millions of shillings in leaked revenue.
The illicit sugar trade between Vanga on the Kenya–Tanzania border in the South Coast to Ishakani on the Kenya–Somalia border has been thriving despite the government taking several moves to contain it.
For example, on Wednesday, three lorries carrying 676 bags of counterfeit sugar and cooking oil valued at about Sh10 million were seized at the Sabaki Bridge roadblock along the Malindi–Garsen Highway in Kilifi County.
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The seizure came as hundreds of bags worth millions of shillings remained held in Shimoni, South Coast, since June 3, after they were seized shortly after being offloaded from a vessel. Notably, goods equivalent to two vessel-loads are still at Shimoni.
According to the Anti-Counterfeit Authority(ACA), the sugar was smuggled from Somalia but was intercepted during a multi-agency security operation conducted Tuesday night at the Sabaki Security Patrol Point.
The bags of sugar were branded Butali Sugar, and other labels with items such as jerricans of cooking oil were also confiscated.
The ACA Executive Director, Robi Mbugua Njoroge, said counterfeit sugar harms the Kenyan sugar industry by undermining thousands of farmers’ livelihoods and threatening an industry that employs millions of people both directly and indirectly.
“This seizure is not just about protecting consumers from harmful counterfeit sugar and oil. It is about safeguarding our economy and national security,” said Dr Njoroge.
In the past two months, a multi-agency team has also intercepted contraband sugar at Lunga Lunga and Taveta One Stop Border Post in the South Coast worth more than Sh15 million in total.
In one instance, authorities intercepted large quantities of contraband sugar at the Lunga Lunga and Taveta One Stop Border Posts in Kenya’s South Coast region, exposing the scale and persistence of sugar smuggling into the country.
The KRA Commissioner of Customs & Border Control, Lilian Nyawanda, confirmed that the sugar had not been declared and was intended to be repackaged for illegal sale in the local market.
The Kenya Coast Guard Director General, Bruno Shioso, said that more officers have been deployed along the Coast to contain the illegal trade.
“We have been having intelligence of the illegal sugar trade along the Coastline and our proactive measures have led to several seizures amounting to millions of shillings. We are vigilant, and more officers will be deployed to end the crime, which costs both the government and sugar factories,” he said.
National studies indicate that counterfeit and illicit trade costs Kenya an estimated Sh153 billion annually in lost tax revenue and contributes to the loss of over 40,000 jobs.
According to the latest data by the National Crime Research Centre, sugar accounted for nearly half of the goods smuggled across Kenya’s porous border points, with 48 percent of all the incidents of smuggling involving the product, with 789 cases reported in 2019.
Other popular products smuggled into the country include alcohol and illicit brews (28 percent), illegal drugs such as cocaine and heroin (25.2 percent), cereals (23 percent), clothes, shoes, and handbags (12.8 percent), charcoal/coal (12 percent), and wheat and maize flour (11.3 percent).
Sugar is mainly smuggled into the country through eight counties, including Garissa, Kajiado, Narok, and Migori, followed by Mandera, Kwale, Trans Nzoia, and Busia.
Apart from the negative impact on revenue, smuggled goods may carry a health risk in cases where their quality is not guaranteed.
