Officers from the Directorate of Criminal Investigations (DCI) have arrested city businessman Abdulmajid Mselem Timami in Mombasa.
Timami was found with one kilogram of heroin estimated to be worth Sh1.5 million.
Detectives say the narcotics were wrapped in a polythene bag and concealed in the tycoon's new vehicle.
He was apprehended while allegedly preparing to make a delivery to his chain of distributors.
Timami, who owns a fleet of trucks that operate within East Africa, is suspected of being involved in the drug trafficking business for 10 years.
He is currently being held at Central Police Station in Mombasa and will be arraigned in court on Monday.