Kenya’s ports are bursting at the seams with Chinese smartphones—and behind the scenes, a storm is brewing.
In a jaw-dropping twist, the country’s total imports have soared to a staggering Sh576.14 billion in 2024, driven largely by a deluge of smartphones flooding in from China. This comes despite aggressive government crackdowns on customs loopholes and rampant tax evasion.
According to new trade figures from China, over 2.3 million smartphones were shipped to Kenya this year alone—a 71.5% spike compared to 2023’s 1.3 million units. The dramatic surge has stunned economists and raised fresh concerns among local authorities.
But this isn’t just about electronics—it’s part of a wider tidal wave. Chinese imports into Kenya have exploded by more than 25%, up from Sh459 billion last year, marking the fastest climb since the 2015 Standard Gauge Railway boom.
The Kenya Revenue Authority (KRA) is in a frantic race to plug the leaks. In a sweeping reform effort, the agency has overhauled customs valuation rules, shifting from weight-based to item-based taxation—a move aimed at dismantling a widespread mis-invoicing scheme that has allowed traders to duck taxes by declaring goods at suspiciously low values.
The crackdown, launched in July 2023, zeroes in on consolidated cargo—bulk shipments that hide high-value items like phones, laptops, and electronics under the guise of cheaper goods. But the fightback hasn’t come easy.
Border chaos has erupted, as small traders—who rely on consolidated imports to survive—clash with customs officers over tax bills and shipment delays. Electronics, fashion items, toys—nothing has been spared.
Investigations comparing Chinese and Kenyan trade data have unearthed glaring mismatches, fueling suspicions that massive under-reporting is still happening under the radar.
In response, the National Treasury has unveiled a bold 2024–2027 Revenue Strategy, pledging to join forces with foreign tax bodies. The plan? Set up a robust system to exchange real-time data on “high-risk imports” from China and crack down on shady customs practices and multinational tax dodging.
“We’re putting a spotlight on suspicious imports. This includes working with other jurisdictions to verify true values and tackle transfer pricing abuse,” the Treasury stated.
China remains Kenya’s biggest supplier of everything from smartphones and TVs to steel and heavy machinery. The rising tide of imports speaks to Kenya’s appetite for cheap, high-tech goods—but it also deepens the nation’s trade deficit and puts local manufacturers in peril.
All this is happening while China faces global trade tensions, especially with the U.S. and the EU. With American tariffs choking Chinese exports since Donald Trump’s first term and continuing under President Biden, Beijing has pivoted sharply toward African markets like Kenya.
History shows these trade waves reflect major shifts: after the 2017 launch of the SGR’s first phase, Chinese imports dropped by 5%, then rebounded in 2019 with the Naivasha extension, only to dip again during the pandemic. Now, they’re climbing at full speed.
But behind this boom lies a growing storm—a battle for revenue, fairness, and the future of Kenya’s local industries.
