Port delays will soon be a thing of the past. The costs associated with clearance of goods at Kenyan borders is also set for a drop. This follows announcement by Kenya Trade Network Agency (KENTRADE) that the first phase of the Electronic Single Window System will begin implementation from July 2013.
This electronic platform will be used as the only entry point for lodging of trade transactions and documentation. The system will integrate the electronic systems of various parties engaged in the cargo clearance process including the Kenya Revenue Authority (KRA), Kenya Bureau of Standards (KEBS), Kenya Ports Authority (KPA) among others.
Traders and business people will no longer need to use physical paper and will be able to lodge documents from the comfort of their office computers using the new system. Documents lodged through the system will be delivered and handled by the shipping fraternity i.e. KEBS, KRA and transporters in the same way as the conventional paper documents. The digital documents will appear on port authorities’ computer screens in real-time.
KENTRADE chairman retired General Joseph Kibwana described the new system on Capital Business saying, “For example KRA will say for this particular container, the duty is KES X, KPA will come up with a reply and for the consignment our charges are KES Y. You as the importer will then instruct your bank to pay the two authorities. Then after you have paid, you will be told, go to the port and pick up your luggage.”
According to importers, delays and sluggish service delivery by Kenya Revenue Authority (KRA) at various stages of clearance at the Mombasa port has been the reason as to why Kenyans are paying more for various items such as food and pharmaceuticals among other industrial goods.
[READ: KRA Port Delays, The Cause For High Import Prices]
Players in the freight industry have complained that Simba system, an online clearance and taxation platform by KRA has frequent breakdowns and connection problems. Importation of foodstuff is cheap at the source but the cost of moving the cargo inflates the overall transaction cost.
If KRA was to step up its efficiency at the port, consumers would save at least KES 6 per kilo on sugar or maize flour. The new single window system is expected to end this situation.