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Simplifying Trade Processes for Kenyas Competitiveness

Q&A ON IMPLEMENTATION OF THE KENYA NATIONAL ELECTRONIC SINGLE


WINDOW SYSTEM (KENYA TRADENET SYSTEM) WITH KENTRADE AG. CEO MR.
AMOS S. WANGORA
Introduction
Best practices requires that a Single Window System is managed centrally by an
independent corporate entity, to enable appropriate Government Agencies and
Authorities to receive and access information relevant for their purposes. In Kenya,
the Government established the Kenya Trade Network Agency (KENTRADE) in
January 2011 as a State Corporation for this purpose. The mandate also includes
Trade Facilitation which is one of the areas that Single Window addresses.
QUESTION AND ANSWERS
1. The Electronic Single Window System (Kenya TradeNet) as promised by
Cabinet Secretary National Treasury Henry Rotich, should be fully operational
by July 1, 2015. What will traders be doing differently?
The Statement by the Cabinet Secretary National Treasury Mr. Henry Rotich that as
from July 1, 2015, the Kenya TradeNet System will be fully operational in simple
terms means that implementation of the main modules have been completed and are
operational. The statement was informing the citizenry and stakeholders of the
Kenya TradeNet about directive by National Treasury of the cross over from the
manual to an electronic platform (Kenya TradeNet System). This simply means that
will as from July 1, 2015 Traders processing the documents from Partner
Government Agencies (PGAs) in the table listed below will be able to:

Submit all cargo clearance related documents electronically through the Kenya
TradeNet System for processing and approval by various Government
Agencies
Make electronic payments through the Kenya TradeNet System
Receive approved documents electronically through the Kenya TradeNet
System
PARTNERS GOVERNMENT AGENCIES AND DOCUMENTS TO BE PROCESSED
THROUGH THE KENYA TRADENET SYSTEM:
SNo.
1.

DOCUMENT
Sea Manifest

2.

Air manifest

3.

Bayplan (Baplie)

4. 3Import Declaration Form (IDF)


5.

Import/Export permits

6. Import/Export Permits
7. 7Import/Export Permits
.
8. Import/Export Permits
9. 9Inspection and Approval document
10. 1Import /Export Phytosanitary
0Certificate
11. 1Plant Importation Permits
1
12. 1Import/Export Health certificate
2
13. 1Import/Export permits
3
14. 1Annual
Sugar
Import/Export
4Permits
15. 1Import/Export Permits
5
16. 1Import/Export Permits
6
17. 1Import / Export Permits for Diary
7Products
18. 1Import/Export
Permits
for

PARTNER GOVERNMENT AGENCY


Kenya Revenue Authority ( KRA) & Kenya
Ports Authority(KPA)
Kenya Revenue Authority(KRA)
Kenya Revenue Authority ( KRA) & Kenya
Ports Authority(KPA)
Kenya Revenue Authority(KRA)
Kenya Medical Laboratory, Technician and
Technologists Board (KMLTTB)
Department of Veterinary Services (DVS)
Agriculture, Fisheries and Food Authority
(AFFA) Coffee Directorate
Agriculture, Fisheries and Food Authority
(AFFA)-Horticultural Crops Directorate
Kenya Bureau of Standards (KEBS)
Kenya Plant Inspectorate Services
(KEPHIS)
Kenya Plant Inspectorate
(KEPHIS)
Port Health Services(PHS)-

Services

Pharmacy and poisons Board


Agriculture, Fisheries and Food Authority
(AFFA)-Sugar Directorate
Agriculture, Fisheries and Food Authority
(AFFA) - Tea Directorate
Pest Control Produce Board (PCPB)
Kenya Diary Board (KDB)
Radiation Protection Board (RPB)
2

8Radioactive materials
19. 1CITES- Export Import/
9/Re-export permit

Kenya Wildlife services (KWS)

2.
Wh
at are the Services / Documents that will be processed through the Kenya
TradeNet System?
The services that are available through the Kenya TradeNet System are Submission,
Processing, Payments and Approval of cargo clearance documents electronically.
The main documents processed through the System include:

Unique Consignment Reference(UCR)


Impending Arrival Report (IAR)
Bay Plan (BAPLIE)
Manifest Sea
Air Manifest
Manifest Road
Import Declaration Form (IDF)
Dynamic Risk Management
Security Bonds
Exemptions
Payments records
Availability of attachments
Cargo Release dash board
Reports
Import/ Export Permits issued by the following Partner Government Agencies
(PGAs):
o Kenya Revenue Authority
o Kenya Bureau of Standards
o Kenya Plant Health Inspectorate Services
o Pharmacy and Poisons Board
o Port Health,
o Agriculture, Fisheries and Food Authority - Horticultural Crops
Directorate
o Agriculture, Fisheries and Food Authority -Sugar Directorate
o Agriculture, Fisheries and Food Authority -Coffee Directorate
o Agriculture, Fisheries and Food Authority -Tea Directorate
o Department of Veterinary Services
o Kenya Diary Board
3

o
o
o
o
o
o
o
o
o

Radiation Protection Board


Pest Control and Produce Board
Kenya Wildlife Services
National Biosafety Authority
Central Firearms Bureau,
Nursing Council of Kenya
National Environment Management Authority
Kenya Medical Laboratory Technicians and Technologists Board
OGEFREM

3. Does Kenya TradeNet System threaten the jobs of Clearing and


Forwarding Agents?
No. The Kenya TradeNet System will not lead to job losses. The System will instead
enable the business environment to trade efficiently. An improved business
environment is expected to lead to a reduced cost of doing business and increased
efficiency in trade. This will lead to competitiveness in trade transactions and attract
Foreign Direct Investment (FDI) which will create more jobs.
4. How has the uptake of the Kenya TradeNet System been since its official
launch?
We have recorded impressive uptake since the System Go Live on October 30,
2013 subsequent official launch held on May 02, 2014. The implementation was
done in a Phased approach and all the stakeholders have been very supportive. We
engaged stakeholders in the planning and implementation processes at all stages to
ensure that they are part of the process. More importantly, we carried out
sensitization campaigns targeting stakeholders both from the public as well as
private sector.
5. Does the System have the capacity for mass adoption as directed to begin
from July1?
Yes. The Kenya TradeNet System has been designed to take care of the expected
volumes once all stakeholders have been brought onboard the System.
6. What guarantee would you give that it will not keep crashing down? What
are alternatives in case it fails or develops the teething problem?
4

Adequate redundancies have been provided to ensure uptime for the System with
increased transaction load. There are multiple infrastructure equipment for each
service (Database, Application, Web and so on. Our highly skilled and experienced
technology implementation partner (CrimsonLogic) was also instrumental in
adequately sizing the Infrastructure to ensure that the system does not crash with
heavy transaction load. Additionally, the systems performance has been tested and
the system has been in use for over one year and has handled increasing load
gracefully.
7. What benefits has the System generated for government so far?
First and foremost the Kenya TradeNet System will reduce delays and trade
transaction costs. Its foremost benefit is of bringing greater harmonization and
better sharing of relevant data across the Government departments/System
resulting in improved efficiency, transparency and effectiveness of official controls.
This enhances revenue collection and reduce cost of doing business both for the
Government and the business community. Other benefits that are currently realized
by the both the Government and stakeholders include:
Electronic tracking of documents by use of the Unique Consignment Reference
(UCR). Traders are able to monitor and get feedback on the status of the
documents from the comfort of their offices (Real Time) without visiting any
Government office
Electronic processing and approval of permits by the Partner Government
Agencies (PGAs). Currently 20 out of a target of 27 PGAs are on board the
System while the remaining 7are piloting on the System.
Electronic payments for permits and Import Declaration Forms (IDFs). Traders
are making payments within 3 hours as opposed to 1-2 days before the
implementation of the System.
Traders processing IDFs through the Kenya TradeNet System are now taking
less than one day to process and inspect cargo as opposed to 3-4 days as was
the case earlier
Increased compliance by stakeholders which has resulted to increased revenue
to Government Agencies since the System has blocked loop holes used to evade
authorities.

8. What benefits can you say will be derived from it after one year, midterm (5yrs), and in the long run?
When fully operationalized, the System will eliminate/reduce the cumbersome
paperwork. The UCR concept facilitates creation of electronic files and therefore
does away with the need for paper based files. The introduction of a Dynamic Risk
Management module has introduced objectivity and eradicated/reduced subjectivity
associated with static cargo targeting methods. It has also reduced human contact
and enhanced transparency.
Additionally, the project presents an opportunity for additional online services and
information to the business community as well as an opportunity to partner with
youths in the provision of facilitation services to the trading community
It is expected that the System will drastically reduce delays and transaction costs
and hence improve the doing business environment in Kenya that will lead to
increased Foreign Direct Investment leading to creation of new jobs and additional
revenue to the Government. The Kenya TradeNet System is one of the Kenyas Vision
2030 Projects under the Economic pillar, and we expect that it will help Kenya to
improve on World Bank Doing Business Ranking.
9. How can traders be sure that hackers will not interfere with the system and
gain access to confidential information?
As per ICT Security best practice used to secure key National Information Systems,
KenTrade has implemented a host of cutting edge Information Security technologies
to provide assurance of system security. KENTRADE also has a highly qualified ICT
team that works to ensure Information Systems security.
10. In terms of revenue collection, how efficient has the system been?
The System has integrated with the Kenya Revenue Authority i-Tax system to
facilitate electronic payments for applications made through the Kenya TradeNet
system which has facilitated a faster and more efficient payment process for the
Trade community.
11. Banks initially appeared averse to the system. Which banks do you have on
board to enable traders make regulatory payments?
6

Initially a number of banks experienced teething problems in configuring their


Systems to be able to process e-slips generated through Kenya TradeNet System.
This has since been resolved and so far, National Bank, Equity, I &M, Cooperative
bank, Kenya Commercial Bank, Standard Chartered bank, Citi bank, Bank of Africa.
The rest of the banks are piloting on the System.
12. How do the various departments for instance KEBS, KWS, or KEPHIS
reconcile the individual licenses issued?
The System has an inbuilt reporting module that generates electronic reports hence
making reconciliation of records very easy.
13. Is the data sent to them in real-time or do you send it to them later?
The Data is sent in Real time
14. What in your opinion is the future of the system?
The Kenya TradeNet System has a very bright future. The Single Window Concept is
not new. It is operational in Singapore, Korea, Malaysia, Mauritius, Tunisia and
Ghana just to mention a few. Studies from these countries indicate large savings to
these economies realized via: Reduced inefficiencies, improved transparency and
visibility
in
trade
documentation
processing,
Reduced
manual
documentation/paperwork, Reduced cost of capital (JIT Concept; Reduced
demurrage, improved space utilization at the Ports increased capacity utilization
for higher volume turnover.
Finally, International Organizations such as World Trade Organisation (WTO),
World Customs Organization(WCO), United Nations ;Africa Alliance for Electronic
Commerce among others are promoting the Single Window System (SWS) Concept
as the future tool in trade facilitation.
________________________________________ENDS___________________________________________________