KRA Intercepts 10,000 Litres of Suspected Illicit Ethanol in Disguised Fuel Tanker

Story by Maurice Momanyi

The Kenya Revenue Authority (KRA) has intercepted 10,000 litres of suspected illicit ethanol being transported in a tanker disguised as a vehicle carrying petroleum products, averting a potential tax loss estimated at KSh14.2 million.
The interception was carried out by KRA enforcement officers working alongside the National Police Service and the Directorate of Criminal Investigations after receiving intelligence that a truck was transporting suspected ethanol from Nakuru.

According to KRA, the consignment was linked to a company whose application for a permit to purchase denatured ethanol had previously been rejected after it failed to meet the required conditions.
The authority said the circumstances surrounding the consignment point to an apparent attempt to obtain and move ethanol outside the legally prescribed process.
Ethanol and denatured ethanol are controlled products whose movement is regulated under Kenya’s Excise Duty Regulations, 2020. While ethanol has legitimate uses in industries including pharmaceuticals, cosmetics, perfumes and sanitiser production, it is also a key raw material in the manufacture of alcoholic beverages.
KRA said denatured ethanol is chemically treated to make it poisonous and unsuitable for human consumption and is intended for industrial uses such as manufacturing paints, cleaning agents, solvents and methylated spirits.
The authority warned that diversion of the product into the illegal alcohol market poses a serious public-health threat because alcohol produced using denatured ethanol can be dangerous to consumers.
Had the intercepted consignment reached the illicit market, KRA estimates that the 10,000 litres could have been used to produce about 96,400 bottles of alcoholic beverages based on the 250ml bottle size.
The estimated illegal production would have had a market value of approximately KSh28.92 million and exposed the government to an estimated KSh14.267 million in lost tax revenue.

KRA said illicit ethanol also supports the wider illegal alcohol supply chain by increasing the availability of raw materials, driving demand for counterfeit excise stamps and facilitating the manufacture and distribution of cheap alcoholic drinks.
The authority linked the illicit alcohol trade to addiction and the consumption of unsafe alcoholic products, which it said have been associated with deaths reported across the country.
The interception is part of a wider government effort to disrupt illicit alcohol supply chains, protect legitimate businesses, safeguard public health and prevent revenue leakages.
KRA said it will continue working with other government agencies and stakeholders to ensure controlled products are handled and transported in accordance with the law