Simplifying Trade Processes For Kenya Competitiveness

NATIONAL INITIATIVE OF E-COMMERCE INVOLVING THE

SW PLATFORM( The Kenya TradeNet System)

The 6th Edition of the International

Single Window Conference

4TH October 2017

Accra, Ghana

Amos S. Wangora, Msc, FICS

CHIEF EXECUTIVE OFFICER

KENTRADE

Kenya Trade Network Agency A State Corporation established

in January 2010 vide Legal

Notice No 6 of 2011.

Principal Objectives:

To Facilitate International

Trade

To implement, operationalize

and manage the Kenya

Electronic Single Window

System.

Parent Ministry:

National Treasury

Government initiatives in digitisation of public services through the

use of Information technology to enhance G2B, B2G and G2G services

• Set up of Integrated Systems by various Government

Agencies/Department

• Government decision to implement a National Electronic Single

Window System (SWS) in 2010

• Integration of various Government Systems

(eCitizen, Payment Gateways, Electronic Payment

options)

Introduction

National Trade Facilitation Committee

o Kenya signed the TFA on 10th December 2015

o The National Trade Facilitation Committee (NTFC) was set up on 16th Sept 2016 and formally launched on 10th July 2017

o Membership of 52 Public and Private sector institutions.

o Chaired by State department of Trade

o Co-Chaired by Kenya Private Sector Alliance (KEPSA)

o Currently has 59 members

a) It has also established 4 thematic groups that are to meet quarterly

b) NTFC is expected meet quarterly and on adhoc basis

o NTFC provides oversight on the implementation of e-commerce initiatives within the framework of

Kenya TradeNet System

Portal

www.kentrade-portal.com

OGAs Trade Community

• A single entry point for

all Import and Export

applications

• Regulations and

requirements

• Integrate OGAs

Kenya TradeNet System Information Portal

Kenya TradeNet System Summary

Kenya TradeNet System is the name of the Kenya Single Window

System.

Important Dates

i. October 31, 2012 – Project Kick off

ii. October 31, 2013 – Kenya TradeNet System go live

iii. May 2, 2014 – Official launch of the System

Number of system users - Over 9,000 registered system users &

over 80,000 importers

44 stakeholder organizations including 35 Partner Government

Agencies (PGAs).

TradeNet System

Security Agencies/ Non-

Permit issuing PGAs

Traders

Freight Forwarders

Shipping Line

Banks

Airlines/ GHA

Consolidators

TRADENET STAKEHOLDERS - 35 PGAs

Information

exchange and hub

SERVICES – 21 Modules implemented

Manifest Module

Risk Management

System

Data Validation &

Archive

Desktop Client

Authorization &

AuthenticationTranswork Hub

Trading Partner

Registration

Kenya ESWS System

ePayment Facility

Declaration Module

SW Modules

Crimson Trade Facilitation Suite

KRA

KPA

Inte

rfa

ce

La

ye

r

SIMBA

Standard XML

or EDI

Trading

Community

Banks

OGAs (TBK, HCDA,

KEBS etc)

KE

SW

S P

ort

al

Common Layer

Master &

Consignment Permits

Permit Management

& ApprovalsUCR Management Administration

OGA Permits & License Management

Security & Access Control

WorkflowsData & Management

Information System

Customer

Management SystemMessaging Hub Network Billing System

KWATOS

Standard XML

or EDI

WeighBridge

System

Standard XML

or EDI

ePayment

Gateway

Standard XML

or EDI

System Admin

Notification & Alerts

Reporting Audit Trail

Declaration Transmission

Permit Module

Integrated Risk Assessment

Cargo Release

Manifest

Marine Cargo Insurance

PGA Enhancements

Duty Remissions

Operational functionalities

E-Payment

CORE MODULES ENHANCEMENTS

Kenya TradeNet Features

Value Added Services

Certificate of

Conformity

TradeNet System Users

There are 9009 users categorised as follows:

2984

75

3792

436

1345

377

0

500

1000

1500

2000

2500

3000

3500

4000

Number of Users

CA CFS EXIM INS OGA SA/FF

42% 4.84% 14.92% 4.18%33% 0.83

%

1. Reduction in the average number of processes in processing clients

applications by almost 50%.

2. Reduction in the average number of documents required for processing

applications by about 30 – 50%.

3. Paperless (electronic) application by traders 24/7 basis.

4. Reduction in use of paper resulting to cost savings;

5. Time taken to process clients requests has reduced by over 50%.

6. Electronic confirmation of Payments.

7. Provision of multiple payments channels.

Achievements

IFC/WB Assessment Report by IFC Consultants 24 – 28 October 2016

8. Significant time savings in preparation of manifest from 2-

3 days to just 15 mins for larger agents running their own automated

systems;

9. Responsiveness of KENTRADE to address support calls and, for

the private sector having a single point of contact for any type of

problem is of great benefit;

10. Removal of potential to falsify documents leading to

Government Agency confidence - further speeding up

processing.

11. Increased Compliance

Achievements cont…

IFC/WB Assessment Report by IFC Consultants 24 – 28 October 2016

Time saved after Single Window

CDC Consulting Group Study commissioned by KENTRADE – July 2016

Challenges

• Change Management

• Scope Creep

• Cyber security

• Conflicting Legal mandates

• Lack of harmonized data repositories between all the stakeholders

such as:

• HS codes; Integrated tariffs; UN Lo-codes, Vessel information

and data ,importers and exporters; Banks branches;

• Total cost of ownership of ICT systems is prohibitive

Kenya Trade Information Portal• A Trade Information Portal is an online platform that publishes comprehensive

Trade related information including;i) Procedures – step by step guideii) Documents including formsiii) Requirements and regulationsiv) Contacts of service providersv) Noticesvi) Statistics etc

Trade Information Portals are one-stop-shops for information on trade whose aim is to achieve total transparency through publishing of all information required by traders from the Traders point of view.

• KenTrade with technical support from UNCTAD and funding support from TMEA is implementing the Kenya Trade Information Portal Project (1 year Project).

• The Kenya Trade Information Portal will address Article 1.2 of the WTO TFA.• Go-live by June 2017

Selectprocedur

ecriteria

Searchprocedur

e

New Ventures• Set up a maritime Single Window in line with the International

Maritime Organisation (IMO) and Facilitation of International Maritime Traffic ( FAL) Convention

• Working with the regional countries on an East African Community(EAC) Data exchange framework for National SWS

• Incorporate use of modern technologies such Business Intelligence (BI) & Data Analytics and Block Chain

• Streamline and harmonise cargo procedures, rules and regulations at the entry/exit points - legal inconsistences

• Embrace e-commerce by provision of Value Add Services to the Trade Community such as the Trade Information Portal.

“By any measure the implementation of the

Kenyan Electronic Single Window must be

deemed successful. The project has not only

implemented a regulatory single window which

meets nearly all criteria as defined under

UN/CEFACT’s Recommendation No. 33 and 35 for

a single window, but it has done so with a

satisfied client base”

IFC/WB Assessment Report by IFC Consultants 24 – 28 October 2016

Known Unknown

Changing ?

MANDATORY:THE CHANGE

MANAGEMENT PROCESS

Conclusion

Use of technology to determine the growth prospects of theMaritime business:Has the government, through KENTRADE, been able to provide theright technological framework to help determine growth in themaritime sector?

• Yes but there is need for improvement

QUESTIONS?