Implementing the Kenya Electronic Single Window System

PRESS RELEASE

Electronic Cargo Clearance System to Boost Kenya’s Economy Nairobi July 29, 2013 ………Kenya Trade Network Agency (KenTrade) Chairman Gen.Joseph Kibwana (Ret) has said the October 31, 2013 transition from manual to Electronic Single Window System will boost the economy and increase prosperity in the Kenya by making trade systems simpler, faster and more cost-effective. He was speaking during a workshop organized by Kentrade to sensitize stakeholders in trade logistics and shipping industry, on the implementation of the Kenya National Electronic Single Window System (KNESWS) project and how it will impact on their businesses. Gen. Kibwana said that inefficiencies in the trade logistics in this country have been for many years a major cause of concern to Government and the trading community alike. “The procedures involved in cargo clearance processes have been cumbersome and expensive and also prone to corruption. We seem not to have paid serious attention to trade facilitation as a country and this has brought a lot of suffering and inconveniences and unnecessary costs to business enterprises particularly those engaged in the import and export trade” he said . These inefficiencies he said contribute to 45 per cent of the Cost, Insurance and Freight (CIF) value of goods imported and exported in this region which can easily be translate to an estimated losses of up to USD 100 million every year “, Gen. Kibwana said. He said that Kenya’s ranking in the annual World Bank’s survey report on the Ease of Doing Business Index had dropped from position 117 in 2011 to position 121 in 2012. Said Gen Kibwana: “When we take a look at the present global scenario in trade facilitation, we note that countries that have embraced the Single Window System and other trade facilitation measures such as Singapore have made great economic strides and are very competitive,” The improvement of Kenya’s Doing Business Index Ranking, particularly in the category of trading across borders, is important for the country because potential investors worldwide want to invest in countries that have efficient trade logistics processes and that are cost effective. He noted that KenTrade welcomed the President’s directive that transit cargo should take a minimum of five days from clearance at the Port of Mombasa to the border posts of Malaba and Busia. He further added that the Single Window Project will streamline the business processes and eradicate bottlenecks associated manual documentation of international trade transactions. Ken Trade’s Chief Executive Officer Alex Kabuga appraised the stakeholders on the milestones recorded in the project implementation which began in October, 2011 and due for roll out in at the end of October this year. He thanked the Government for political goodwill and other Government stakeholder organisations for their co-operation and support in the project which he said are critical success factors. Kenya International Freight and Warehousing Association (KIFWA) National Chairman, Boaz Makomere who also attended the event, said that KIFWA fully backs the introduction of the Single Window System since its implementation will help address the existing inefficiencies in trade logisitics by presenting a platform which will be a single entry point of documentation and hence

Implementing the Kenya Electronic Single Window System

remove the hassle that clearing agents have to go through by physically walking from one Government Agency to another in cross border trade cargo clearance processes. Mr Makomere further added “ KIFWA supports implementation of the Single Window System from the top level of leadership to the lowest individual clearing agent on the ground is because we know that the its success is not an option to us,” he said During the workshop, the Kenya Shippers Council CEO Gilbert Langat noted that the shipping industry is in great anticipation of the effective automation of the port clearance and the integrated electronic platform set to be rolled out by KenTrade, as it will rescue that country from economic loses occasioned by wastages and delays as a result of inefficiencies from the paper based cargo clearance at the Port. Other stakeholders who attended the event were Secretary for Trade, Energy & Industry Mombasa County Hon Ibrahim Mohammed, Chief Executive Officer of Kenya Shipping Agents Association Juma Tellah, Mombasa County KNCCI Chairman James Mureu, Nakuru County KNCCI Chairman Njuguna Kamau, KIFWA Nairobi Branch Chairman Grace Chege, among other stakeholders in trade logistics and shipping industry. The sensitization campaign on electronic single window system commenced in May 2013, and has seen Kentrade engage hundreds of key stakeholders in trade logistics in many parts of the country mainly to appraise them on the implementation of the Single Window System and the impact it will have on their operations once it is rolled out. KenTrade is implementing the KNESWS project in cooperation with other Government Agencies who are interveners in cargo clearance processes. These include Kenya Revenue Authority (KRA), Kenya Ports Authority (KPA) and Kenya Bureau of Standards (KEBS) among others. _____________________________________________ENDS________________________________________________________ For further more information, please contact:

Ann Odero

Corporate Communications Manager

Kenya Trade Network Agency

Email: aodero@kentrade.go.ke

Cell: 0722 256 009

Tel.0202614887

Additional information

Kenya Trade Network Agency (KENTRADE) is a State Agency under the Ministry of National Treasury with

the mandate to facilitate external trade and implement the Kenya National Electronic Single Window System

(KNESWS) The Electronic Single Window System is platform 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. Key stakeholders – includes Kenya Revenue Authority,

Kenya Ports Authority, Kenya Bureau of Standards, Tea Board of Kenya, Kenya Bankers Association, Kenya

Shipping Council, Kenya Plant Health Inspectorate Services, Kenya association of Manufacturers, Kenya

Maritime Authority, Kenya Shipping Agents Association and Kenya ICT Board

Implementing the Kenya Electronic Single Window System

The objectives of the Kenya National Electronic Single Window System (KNESWS) Project are:

To facilitate international trade in Kenya by reducing delays and lowering costs associated with clearance of goods at the Kenyan borders, while maintaining the requisite controls and collection of levies, fees, duties and taxes, where applicable, on imports or exports.

Reduction of cargo dwell time at the Port of Mombasa to a maximum 3 days and a minimum of one day at the Jomo Kenyatta International Airport over a period of 1 year after operationalization. At the border posts the Single Window System is expected to reduce the cargo dwell time for both transit and intra-regional trade consignments to a maximum of one hour.

For details resource, please check our following media platforms: Facebook:www.facebook.com/kentrade.go.ke Twitter:@KenTrade_G2B YouTube: www.youtube.com/user/KentradeG2B