KRA officials at the port of Mombasa on Tuesday intercepted two 40-foot containers with 32 tonnes of hides and skins.
The Kenya Revenue Authority officers, working on a tip-off from the Department of Livestock, seized the two containers that had been declared as carrying used carton boxes.
Livestock PS Harry Kimtai said the exporter of the consignment, identified as Midway Supplies Limited, had misdeclared the cargo to evade paying tax.
Speaking at the port of Mombasa after the seizure, Kimtai said the cargo was destined for Karachi, Pakistan, to a company named BMB Enterprises Office.
“This is an example of an exporter who was evading paying taxes on raw hides. The law does not permit export of raw hides without payment of duty. What this exporter did, he misdeclared to KRA that they are exporting used cartons,” the PS said.
He said if the exporter had succeeded to ship the consignment, the government would have lost Sh1.7 million in tax.
“The export duty is at 80 per cent or Sh54 per kilogram, whichever is highest. That would be about Sh1.7 million for the 32 tonnes seized here,” Kimtai said.
The PS said they have been receiving numerous complaints from tanneries that some unscrupulous traders were smuggling raw hides and skins.
An exporter of hides and skins must obtain a permit from the Department of Veterinary Services in the Ministry of Agriculture before being allowed to ship out a cargo.
He said Midway Supplies Limited has successfully transported about 54 containers undetected previously.
He called for action by the Directorate of Criminal Investigations and KRA.
"We believe that the 54 containers that had been shipped by this exporter contained hides and skins. Since we have now the documentary evidence with us, we want the DCI and KRA to intervene and arrest the culprits," he said.
KRA southern region coordinator Nicholas Kinoti said export of hides and skins is restricted in Kenya.
He said KRA has since commenced the investigation into the syndicate.
