KRA Launches Crackdown on Car Owners, Dealers

March 18, 2021

The Kenya Revenue Authority (KRA) has launched investigations targeting dealers and owners of fraudulently registered motor vehicles.

The taxman noted that many innocent car buyers have fallen victim to car dealers who present enticing deals thereby purchasing cars without conducting due diligence.

“KRA has embarked on investigations to identify perpetrators of the fraudulent scheme, it is conscious that some of these vehicles may have been sold to innocent Kenyans who are not part of the scheme,” said KRA Acting Commissioner for Investigations and Enforcement Edward Karanja.

“Those found culpable will be prosecuted and their vehicles and goods detained as stipulated by the law,” added the authority.

KRA also noted that some of the irregularly registered vehicles are of old age contrary to the Kenya Bureau of Standards (KBS) eight-year rule on importation of cars.

Subsequently, the taxman urged Kenyans to confirm the status of vehicles they intend to purchase with its offices or risk consequences attached to the possession of illegitimate motors.

“Members of the public are hereby requested to verify the status of payment of custom duty of registered motor vehicles with the Kenya Revenue Authority before purchasing the same.

“The public is urged to verify the payment status of customs duty with KRA before purchasing. Taxpayers are further requested to report any suspected non-compliant vehicles operating in the country to [email protected],” said KRA.

Individuals committing the offence of holding the felonious vehicles are liable on conviction to imprisonment for a term not exceeding five years or to a fine equal to fifty percent of the dutiable value involved.

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