Kenya, Rwanda embrace new cargo platform

Kenya Trade Network Agency chief executive officer Alex Kabuga address delegates during the opening of a one day stakeholders forum to discus the congestion of containers and other cargo at the port of Mombasa and its impact on business. PHOTO | GIDEON MAUNDU |

What you need to know:

  • Single online system will enable tax authorities from partner countries to collect revenue jointly
  • Kenya is filing documents using the Kenya National Electronic Single Window System while Rwanda has partially embraced it. Uganda, Tanzania and Ethiopia are in the early stages of aligning their custom processes to the new platform.

Only two East African countries have embraced the Electronic Single Window System ahead of December 1 deadline for its full implementation.

Already, Kenya is filing documents using the Kenya National Electronic Single Window System while Rwanda has partially embraced it. Uganda, Tanzania and Ethiopia are in the early stages of aligning their custom processes to the new platform.

When all member countries get on board, the system will facilitate faster and efficient trade, improve business environment and usher in paperless cargo clearance.

“Uganda has just obtained funding and will commence implementation by next month; Tanzania is yet to obtain funding while Ethiopia has set up a study implementation team,” Kenya Trade Network Agency chief executive officer Alex Kabuga said during Import and Export business breakfast forum at Sarova Panafric in Nairobi.

Presidents of member states in November last year agreed on a July 1, 2014 date, which has been postponed to December 1 owing to delays. Member states adopted a protocol making provisions for the system in 2005.

The platform will enable tax authorities from partner states to carry joint collection of revenues at ports of entry. This will immensely cut the time taken to transport cargo across borders.

Further, it would lower operational costs and boost business.

LANDLORD PORT

According to TradeMark East Africa Kenya’s country representative, Mr Chris Kiptoo, “a charter signed by President Uhuru Kenyatta dictates that all port community members’ systems be integrated into the Kenya National Electronic Single Window System by December 2014.”

Since the Port of Mombasa is the connection point for all the East African countries, the charter also directed that Kenya Revenue Authority must work on a model transforming Mombasa port into a high-performance landlord port through a network of road, rail and pipeline.