Four hundred tonnes of contraband sugar valued at Sh38m has been dumped in the Indian Ocean on Saturday.
Industrialisation secretary Adan Mohamed and his Tourism counterpart Najib Balala witnessed the destruction of the illegal sugar that was smuggled to the Mombasa port from Dubai.
The sugar which was in 16 containers had been declared as machine parts when they were intercepted in February 2016.
"We are witnessing the destruction of illicit sugar that was brought into the country without full disclosure,” Mr Mohamed said.
Mr Mohamed lauded the Kenya Ports Authority, Kenya Revenue Authority and Anti-Counterfeit Agency for nabbing the consignment, saying it denies government much-needed revenue and hurts local industries.
"To make an example of people like these, we have taken the decision to destroy the 400 tonnes by pouring it into the ocean," Mr Mohamed said.
The Industrialisation CS warned that they will be destroying contraband goods seized at the port.
The CS said another 162 containers of confiscated contraband goods will be destroyed next week.
Trade PS Chris Kiptoo said that the government had lost 100 per cent duty as the 16 containers were declared as machine parts.
"There is an illegality committed and action will have to be taken. We are not going to spare any form of illicit trade in Kenya whether it is contraband, undervalued or substandard goods," Dr Kiptoo said.