The Kenya Revenue Authority has dealt a significant blow to traders moving unlawful alcohol in Nairobi. Officers intercepted a consignment of illicit ethanol worth Ksh16.26 million near the Standard Gauge Railway corridor following an intelligence tip-off.
The seizure included 5,000 litres of ethanol and a vehicle fitted with gadgets aimed at evading law enforcement. Preliminary assessments indicate the illegal stock could have produced over 48,000 bottles if released into the market, causing the government a potential tax loss of Ksh7.42 million.
The move highlights ongoing efforts by KRA to clamp down on illegal trade that threatens both public safety and government revenue.
Illicit Ethanol Intercepted in Nairobi Operation
On January 9, 2026, KRA enforcement officers acted swiftly after receiving reports of lorries transporting ethanol in a yard near the SGR corridor. By the time officers arrived, the trucks had already left. However, they discovered that the illicit ethanol had been offloaded and stored within the premises.
Authorities recovered 20 drums, each holding 250 litres, totaling 5,000 litres of illicit ethanol. Alongside the consignment, a Toyota Fielder linked to the owners was seized. Investigators discovered that the vehicle had devices believed to be tracking system jammers, pointing to deliberate efforts to avoid law enforcement.
Initial assessments by KRA indicate the ethanol could have produced 48,200 bottles worth an estimated Ksh14.46 million. The seized vehicle carries a value of Ksh1.8 million, bringing the total worth of confiscated items to Ksh16.26 million.
Threat to Government Revenue
The KRA warned that if the ethanol had entered the market, the government would have lost Ksh7.42 million in taxes. This amount includes Ksh2.6 million in value-added tax and Ksh4.82 million in excise duty.
The tax authority emphasized that illicit alcohol not only drains public revenue but also poses serious health risks. Unregulated ethanol often contains harmful chemicals that can endanger consumers, making the crackdown a matter of public safety as well as revenue protection.
Seized Goods Under Investigation
All confiscated items, including the motor vehicle, are currently detained at a KRA warehouse as investigations continue. The enforcement team is working to trace the owners of the illicit ethanol and the logistics network involved in moving the stock. Authorities have also pledged stricter monitoring near transport corridors like the SGR, which have been exploited by smugglers due to their high traffic and logistical advantages.
Crackdown Mirrors Previous Operations
This latest seizure mirrors an operation conducted by KRA in October last year along Lake Victoria. At that time, officers intercepted uncustomed goods worth Ksh3.9 million, mainly linked to small-scale traders attempting to smuggle items through lake routes. The operation recovered Ksh1.6 million in revenue, showing the authority’s persistent focus on curbing illicit trade at multiple fronts.
KRA officials say they will continue intelligence-led operations to prevent similar smuggling activities. By targeting illicit ethanol and other unlawful products, the authority aims to protect consumers, safeguard government revenue, and maintain order in the supply chain of regulated goods.
