KNESWS PRESENTATION TO STAKEHOLDERS

7/22/2019 KNESWS PRESENTATION TO STAKEHOLDERS

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Progress of the Kenya ElectronicSingle Window System Project

Presentation to AIR CARGO STAKEHOLDERS FORUM at JKIA on Friday,25th October 2013


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Presentation Outline

i. KENTRADE

ii. Background

iii. Project Objective

iv. System Implementation

v. Key Milestones

vi. Benefits

vii. Project progress

viii. Road Map


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KENTRADE A State Corporation established on 14th January 2010 vide

Legal Notice No 6 of 2011.

Principal Objectives:

To Facilitate Trade

To implement, operationalise and manage the KenyaNational Electronic Single Window System (KNESWS).

Parent Ministry:

Ministry of Finance

Contract signed between GOK and SingaporeCorporations Enterprise under a G to G agreement forAcquisition, Supply and Implementation of KNESWS.


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Problem StatementTrade procedures in Kenya have been inefficient, lengthy and slow resultingin high cost of trade transactions/doing business. The main reasons are asfollows:

Many stakeholders are involved in the cargo clearance process.

Stakeholders exchange many documents among themselves.

Stakeholder ends up sending the same document to each other many

times.

Exchanges are in hard copy form and in most cases, processing ofinformation is carried out manually.

Results;

Delays in cargo clearance,

Perennial congestion at the port, Underutilization of port facilities

Long truck queues at the border posts

Corruption

Loss of competitiveness for the country.


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Inefficient processes addressed by theKenya Electronic Single Window System

Chamber of Commerce

Warehouse

Carriers

KRA

KTB KPA PPBOther related

government agencies

Importer/Buyer

Exporter/Seller

Freight Forwarder/Shipping

Insurance

Company

Inspection Agents

KEBS

Many government regulatory agencies

Numerous lodgments

Many Duplicated data elements


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Cargo Dwell Time

GovernmentEnterprises

PresentSingle Window Objective

8 days maximum - 3 days

5 days

2 days

maximum - 1 day

maximum - 1 hr.


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Results of Inefficiencies

Tons of trade documents

Congestion at Borders & Port


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Problems of paper based trade

Government

Complex regulation Lack of transparency

Difficult monitoring Loss of Revenue(Corruption)

DecreaseNational Competitiveness

High transaction cost

Long lead time Incorrect processing

Enterprises


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Doing Business RankingDrop in Kenyas ranking Doing Business Index:

Doing Business 2013

RankDoing Business 2012 Rank Change in Rank

121 117 -4

Trading Across BordersDB 2013 Rank DB 2012 Rank

Change in Rank

148 142 -6

Source:http://www.doingbusiness.org/data/exploreeconomies/kenya/#
http://www.doingbusiness.org/data/exploreeconomies/kenya/http://www.doingbusiness.org/data/exploreeconomies/kenya/


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The Solution -Single Window System UN CEFACT RECOMMENDATION 33;

A facility that allows parties involved in trade and transport to lodge standardized

information and documents with a single entry point to fulfill all import, export,

and transit-related regulatory requirements.

Trader or Agent submits all

information required forclearance once to the

Single Window System

Responses from various

Authorities and Financial

Institutions are returned toTrader or Agent

Kenya Revenue

Authority

Kenya Ports

Authority

Other Control

Agencies

Banks


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National Payments Gateway

TRADER

NATIONAL SINGLE WINDOW

PAYMENT

GATEWAY

Transmit paymentrequest

Confirmation ofpayment

NATIONAL PAYMENT SYSTEM

KCB

CBA

NBK

COOP

HABIBSTANBIC

NPS

GATEWAY

CBK

Submits all informationrequired for clearance

once to singlewindow

Response from variousAuthorities and Financial

institutionsare returnedto trader/Agent


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Benefits- Savings to the Economy

Based on the volume of goods imported/exported:-

First 3 years US$ 150m and US$ 250m per annum

Thereafter - US$ 300m to US$ 450m per annum

Arising from improved services e.g. Reduced trade transaction costs

Reduced delays

Reduced Inefficiencies

Reduced corruption Reduced manual documents/paperwork

Reduced cost of capital ( JIT Concept)

Reduced demurrage

Improved space utilization at ports/Airports-Increased

capacity utilization


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Benefits Cont


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Benefits Cont

Lodgment of documents from anywhereany time

Greater efficiency, accountability andreduced cost of doing business

Integration/Interface with the RegionalElectronic Single Window System

Greater coordination of GovernmentAgencies-KENTRADE


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Project Objective

Establish an electronic platform to integratestakeholder systems in cargo clearance process

Facilitate International trade in Kenya byreducing delays and lowering costs associatedwith clearance of goods at the Kenyan borders,while maintaining the requisite controls andcollection of levies, fees, duties and taxes,

where applicable, on imports or exports.

SWS is an Enabler project under the EconomicPillar of Vision 2030


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System Implementation

Cabinet approved a G2G agreement for theConsultancy,Acquisition, and Implementation of the National ElectronicSingle Window System from Singapore CooperationEnterprise (SCE) May 2012

KENTRADE as the implementing agency entered into acontract with SCE for the Supply and Implementation of theSystem which includes a 3 year maintenance period afteroperationalization - September 2012

Kick off meeting between KENTRADE and the vendor for theImplementation of the Single Window System was held onthe - October 2012


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Work Plan

Milestone Date

Signing of the Implementation contract withvendor

Completed

Kick off Meeting with vendor and stakeholders Completed

Business Process Re-engineering of stakeholderprocesses

Completed

System Design Completed

Software Development July 2013

Training of Trainers July 2013

User Acceptance Tests Aug 2013

Training of Stakeholders Sept/Oct 2013

System Pilot Oct 2013

System roll out 31st Oct 2013

Sensitization of Stakeholders Continuous


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ROAD MAPSystem Implementation Kick off - October 2012

System Go-live - 31st October 2013

Manifest Module -Sea & Air

Declaration Module-Sea & Air

License & Permit Module-Tea Board, HCDA and

Pharmacy & Poisons Board

E-Payment Facility Integration with SIMBA

Integration with KWATOS

Integration with KEBS


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ROAD MAP

Integration with Weighbridges

Integration with OGAs

Dynamic Risk Management

Road Manifest Module

Road Declaration Module for Land

Integration with the National Electronic

Payment System (NPS) Gateway


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Presentation on Proto-types

Prototype available atwww.kentrade.go.ke/prototype

OGA Portal To be used for pre-clearance (lodgement of applications forpermits and licences)

Tradenet Portal To be used forClearance.


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Payments Gateway Vision


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Payments Gateway Vision Cont

The payment gateway enables the full range ofpayment channels including credit card, debit card,mobile money, point of sales, internet payments andconfirmation of bank deposit payments;

The payment gateway enables foreign currencytransactions in all major global currencies.

The payment gateway enables a consolidated paymentto be attributed to several receiving agencies and / or

transactions. The payment gateway has a service-oriented interface

that enables easy integration with the payment systemof any participating agency.

The payment gateway is operational 24/7/365 with a99.99% SLA


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Thank you

Documents

KNESWS PRESENTATION TO STAKEHOLDERS