Contraband sugar worth Sh250 million was impounded on Wednesday in warehouses belonging to Rai Paper Mills in Webuye, Bungoma county.
The sugar was in 59,000 bags each weighing 50kgs, translating to about 2,450 tonnes.
It was labeled 'Brown Sugar. Not for Sale'.
Police sources said the commodity belongs to West Kenya Sugar Company located in Kakamega county.
The warehouse has been placed under 24-hour police guard pending verification of the quality of the sugar by relevant agencies. There were no documents to show its origin.
The seizure came on the same day that the government read the riot act to traders in illegal products.
Interior CS Fred Matiang'i issued a tough warning after 1,500 bags of sugar, mostly brown and in 50kg bags, were seized. These were found at a warehouse in Eastleigh Section 3 while another 1,600 were confiscated on Mombasa Road while being transported to the area.
"It is unfortunate that some characters are making abnormal profits from selling poisonous and injurious products to Kenyans," Matiang'i said at the DCI headquarters, Nairobi.
The CS warned that he will not be cowed in fighting counterfeits in the country even if this will pose a danger to his officers.