About 650 tanks of ethanol, valued at about Sh140 million, were recovered at a warehouse in Ruiru, Kiambu county.
Police and Kenya Revenue Authority officials on Tuesday recovered the goods during a raid. They said the owners had evaded Sh65 million import duty.
Two suspects were arrested in the Kamakis area.
Police and KRA officials said there has been an increase in tax evasion, hence they have increased surveillance to tame the trend.
DCI George Kinoti said they are looking for more suspects over the seizure. The chemical is also used in manufacturing alcohol.
Being in possession of uncustomed goods is a violation of the East African Community Customs Management Act, 2004. Conveying uncustomed goods is also a crime under the same law.
Punishment upon conviction of the two offences is imprisonment for a term not exceeding five years or a fine equal to 50 per cent of the dutiable value of the goods involved and a fine not exceeding Sh500,000.
The vehicle and goods in respect of which such an offence has been committed are liable to forfeiture.
In April, the agencies intercepted more than 6,000 litres of ethanol in the same area. The goods were concealed in a lorry that was transporting 50 bags of maize on Thika Road, each weighing 90kg.
The ethanol packed in 25 drums had an estimated tax value of Sh2,224,875.
The interception happened after KRA officers received information that Kayole DCIO had seized a Mitsubishi FH lorry with 25 drums of 250 litres of a colourless liquid suspected to be ethanol.
The verification confirmed the colourless liquid to be ethanol. The driver of the lorry, Charles Kanyuga Gitonga, was arrested and will be arraigned.
KRA said they are working in collaboration with other state agencies at all ports of entry to curb the trade in illicit goods and other transnational economic crimes.
“Taxpayers are encouraged to pay their taxes and remain compliant with tax laws to avoid punitive enforcement measures, including prosecution.”
(Edited by Bilha Makokha)