Jan 31, 2023

Mawazo Writing Africa

Writing about the main

Electronic customs system to reduce cost of business in Kenya

Importers and exporters in Kenya are expected to benefit from increased competitiveness and lower costs of doing business through reduced shipping delays and demurrage after President Uhuru Kenyatta approved the National Electronic Single Window System Bill 2021 on June 21.

The bill authorizes the Kenya Trade Network Agency (KenTrade) to operate autonomously without funding from the Ministry of Finance. KenTrade Facilitates Cross-Border Trade

Amos Wangora, CEO of KenTrade, said, “The law will improve the use of the single window system by helping to protect data” to prevent fraud and exploitation in the Curb logistics coordination system that importers and exporters using the platform often face.

Mr Wangora said the law makes KenTrade a central customs clearance center and offers electronic trade transactions. Previously, traders had to deal with more than eight agencies before cargo was cleared for import/export, but the law will consolidate agencies to work under the KenTrade system.

The law comes two Months after KenTrade Africa launched e-trade platform to handle trade document exchange. The platform is integrated in 22 countries that are members of the African Alliance for Electronic Commerce.

According to the law, only the single window system serves as a single entry point and platform for all those involved in trade and transport, to submit documents electronically including import or export documents.

The system, which is fully integrated with the Kenya Revenue Agency’s Integrated Customs Management System (ICMS), will also ensure 100 percent paperless compliance as it uses is responsible for processing, approving and facilitating the electronic payment of fees and charges due by the government on all imported or exported goods, making it easier and cheaper.

KenTrade says businesses are both direct border-related incur costs, such as expenses related to the provision of information and documents to the competent authorities, as well as in direct costs such as procedural delays, lost business opportunities and unpredictability of regulations.

Based on the current volume of imports and goods in transit through Kenya, the rationalization of the economy will be 150 to 250 million annually for the first three years Save dollars.