Inside KRA's plan to combat illicit trade at Kisumu port

KRA Chairperson Ndiritu Muriithi addresses traders during a citizen assembly forum in Nakuru on September 17, 2025. [File, Standard]

Kenya is currently undertaking critical developments on the Kisumu Port in efforts to scale up blue economy growth on and around Lake Victoria. 

The scheme includes combating illicit trade on the lake, an exercise spearheaded by a multi-agency team including the Kenya Revenue Authority (KRA), among other agencies.

KRA is also banking on its marine unit to improve compliance with the country's existing cross-border trade laws to help grow its revenue.

KRA Western Region in-charge Dominic Kengara said enhanced surveillance to curb smuggling activities and stakeholder collaboration are among the interventions that have already seen the revenue from Kisumu port grow.

Kengara said in the financial year 2024/2025, the authority collected over Sh3.2 million in revenue through customs and recoveries on Lake Victoria.

While in the financial year 2023/2024, they had collected Sh1.9 million in revenue through customs.

Speaking during engagements with media on Marine activities at the Kisumu Port, Mr Kengara noted that smuggling incidents were quickly evolving from the land borders to the lake.

"This is why we are looking at how to fight smuggling through the water fronts.

Some of the goods we intercept are originating from East African community countries," he said.

The Western region manager noted that in the financial year 2023/2024, they intercepted goods worth Sh1.5 million from traders who want to use shortcuts like fisher boats.

Kengara said among the challenges they are currently experiencing is the vastness of the lake and inadequate equipment.

He argued that deterrence will improve compliance and, hence an increase in trade volumes.

The KRA regional in-charge urged traders around the lake to liaise with regional offices for sensitization on contraband goods to minimize losses. 

According to data from KRA, the main revenue driver in the region is the importation of Sugar from Uganda and Tanzania, with 4,600 MT of sugar imported between May 2025 to August 2025, with over Sh170 million collected in taxes and duties.