Kenya has joined East African neighbours Uganda and Rwanda to launch a common cargo tracking system intended to reduce the cost of trade and check tax evasion. The Kenya Revenue Authority (KRA) on Wednesday launched the Regional Electronic Cargo Tracking System, which enables real time tracking of transit cargo from Mombasa port to its destination through an online platform monitored in the three countries. KRA commissioner general John Njiraini said the new system would be operational by the end of the month to replace the current tamper-prone Electronic Cargo Tracking System. “Unlike the current system where we use multiple vendors to install the tracking and which we can only trace up to the border point, this one allows three countries to monitor the cargo in real time hence limiting the opportunity for any collusion to evade tax. It is a game changer in the cross border trade and will go a long way to safeguard Kenya as a major transit point for cargo in this region,” said Mr Njiraini. Kenya began piloting the system with 1,500 gadgets so far. Uganda and Rwanda, which have both launched the system have the same number of devices although it requires at least 7,000 such gadgets to fully monitor cross-border business. There are also plans to roll out the system in South Sudan, Tanzania and ultimately to destinations outside the EAC bloc, including DRC in a bid to eliminate customs border checks and deal with cargo diversion that existed due to border changeover processes....

The Kenya Revenue Authority is counting on the Regional Electronic Cargo Tracking System to mitigate transit cargo diversion and seal tax leakages. The taxman launched the RECTS in Nairobi yesterday in the latest push to digitise its customs operations, connecting with Uganda and Rwanda in the new system aimed at streamlining operations along the Northern Corridor. The system replaces the Electronic Cargo Tracking System where monitoring was done independently by each country through stand-alone platforms. The RECTS now allows centralised monitoring of trucks from the port of entry (Mombasa) to Kampala, Kigali and other destinations in the three countries. “By having customs administrations in three countries tracking the same cargo on virtually the same platform, the opportunities for collusion between importers and staff will be substantially diminished,” KRA commissioner general John Njiraini said. “The sum total of these developments is to make cross-border EAC trade smoother besides minimizing opportunities for tax evasion.” The system comes three years after a July 3, 2014, Heads of States Summit in Kigali, which directed the three members states to adopt e-monitoring for seamless flow of goods. Uganda launched its system last Friday. It involves fitting of an e-seal with a 60-day power capacity, monitored under the GPRS platform. “A Geo-fence of the route has been set up. We have five check points, and a rapid response unit of 200 police officers is in place. Any violation is immediately detected,” customs and border control commissioner Julius Musyoki said. He said challenges such as revenue leakages,...

Kenya has joined East African neighbours Uganda and Rwanda to launch a common cargo tracking system intended to reduce the cost of trade and check tax evasion. The Kenya Revenue Authority (KRA) on Wednesday launched the Regional Electronic Cargo Tracking System, which enables real time tracking of transit cargo from Mombasa port to its destination through an online platform monitored in the three countries. KRA commissioner general John Njiraini said the new system would be operational by the end of the month to replace the current tamper-prone Electronic Cargo Tracking System. “Unlike the current system where we use multiple vendors to install the tracking and which we can only trace up to the border point, this one allows three countries to monitor the cargo in real time hence limiting the opportunity for any collusion to evade tax. It is a game changer in the cross border trade and will go a long way to safeguard Kenya as a major transit point for cargo in this region,” said Mr Njiraini. Kenya began piloting the system with 1,500 gadgets so far. Uganda and Rwanda, which have both launched the system have the same number of devices although it requires at least 7,000 such gadgets to fully monitor cross-border business. There are also plans to roll out the system in South Sudan, Tanzania and ultimately to destinations outside the EAC bloc, including DRC in a bid to eliminate customs border checks and deal with cargo diversion that existed due to border changeover processes....

The Kenya Revenue Authority (KRA) has launched the Regional Electronic Cargo Tracking System (RECTS), connecting with Rwanda and Uganda in reducing the cost of cargo transportation along the Northern Corridor. This follows a July 3 2014 directive by the Northern Corridor Heads of State Summit in Kigali, compelling Kenya, Rwanda and Uganda to embrace e - monitoring of transit cargo along the corridor through a harmonized system to enable seamless flow of cargo. The new system replaces the existing Electronic Cargo Tracking System (ECTS) where monitoring is done independently through stand-alone platforms. This forced KRA officers to toggle between screens, therefore making the process very tedious and ripe for abuse. “Over the years, the cargo volume along the corridor has been increasing steadily, hence the need to facilitate quick movement of cargo without compromising customs security controls,” said KRA Commissioner Julius Musyoki, “Challenges such as revenue leakages, unfair competition in the business environment and increased costs of doing business necessitated a review of the current ECTS.” RECTS has been financed by the United Kingdom Department for International Development (DFID), through TradeMark Africa. According to Frank Matsaert TMA CEO, RECT’s efficiency will ingrain fair terms of trade by creating a level playing field for both importers and local industries as it helps in eliminating diversion of cargo. The new system will largely facilitate trade along the Northern Corridor as it lowers the cost and time of doing business. It is also expected to curb theft and diversion of goods destined for markets within the Northern Corridor through the port of Mombasa. RECTS is a harmonized...

Insurance companies have been warned against price undercutting as the battle for market share in the lucrative marine cargo policies heats up. Price undercutting or predatory pricing is a dubious strategy where a product or service is set very low, with an intention to drive competitors out of the market, or create barriers for potential new competitors. Principal Secretary for Maritime Affairs Nancy Karigithu says price wars amongst insurers will hurt the business. “The rates are falling and it is not good for business,” she said in Mombasa during a Marine Cargo Sensitization Workshop at Bandari College on Monday organised by the Insurance Regulatory Authority. “We must guard against the repeat of what happened in the motor vehicle third-party insurance.” She attributed the practice to a cutthroat competition which if not addressed, she said, could result in piling of unpaid claims as has been the case in the motor vehicle third-party insurance segment. The inability to pay claimants has largely been linked to undercutting of premiums. “We want professionalism; we want realistic premiums that will be able to support claims in marine cargo insurance," Karigithu said, urging the IRA to ensure proper pricing is done. “If you (insurance firms) collect so little that does not match the exposure that you have, then what will happen?” she said. But IRA acting chief executive Godfrey Kiptum said the agency cannot determine the insurers' rates “since it is a business decision done internally”. “However, as a regulator, we have to ensure that once...

About one year ago, Rwanda submitted a detailed plan to the World Trade Organisation (WTO) outlining how it intended to ease cross-border trade. By so doing, the East African nation was simply trying to position itself ahead of peers as the global community haggled over a pact to ease customs procedures around the world. The deal, dubbed Trade Facilitation Agreement (TFA) had been lined up among the low-hanging fruits of the Nairobi Ministerial Forum, the first such sessions to be held by WTO in Africa. Nairobi, however, failed to rally the requisite number of signatories for the deal initially brokered in Bali. Almost one year later, the TFA took effect last week, on February 22, after two thirds of the WTO’s 164 members ratified it, promising a significant drop in cost of executing exports and imports around the world. Rwanda was the first East African nation to sign the TFA followed by Kenya which endorsed it shortly after it hosted the ministerial conference on December 2015. “By bringing the deal into force, we can now begin the work of turning its benefits into reality.” WTO director-general Roberto Azevêdo said in a statement distributed on February 27. Countries such as Rwanda, which prepared themselves ahead of the pack are set to benefit immensely as the TFA contains provisions that allows developing states to receive technical assistance from rich countries. Kenya and Rwanda are already ahead of the pack in the region, having invested heavily in ICT upgrade of their customs systems...

Kenya, Uganda and Rwanda have unveiled a Regional Electronic Cargo Tracking System (RECTs) in a bid to curb lose of cargo in transit. Speaking in Kampala, where the Sh440 million system was launched, customs officials said the system would reduce transit time from Mombasa to two days from the current seven. The system will enable revenue authorities jointly track movement of goods from port to destination electronically. The service will be free as revenue authorities will meet all operational costs. Uganda Revenue Authority Commissioner General Doris Akol said the system will reduce cost of doing business, enhancing cargo safety and helping traders predict arrival of goods. “The partnership helps us monitor goods, ease cargo handling, improving revenue collection and reducing diversion of untaxed goods. This will benefit traders and assure potential investors of level playing field in our region,” she said. The United Kingdom Department for International Development has supported the project with Sh457.6 million grant. RECTs comprises satellites, central command centres in each of the revenue authorities headquarters, smart gates and rapid response units. An electronic seal is attached on transit cargo vehicles and communicates with the command centres giving real time updates. Rapid response units are stationed along sections of the Northern Corridor identified as notorious for diversion of goods. Source: Media Max

Despite the lack of consensus among the East African Community (EAC) partner states over the signing of the Economic Partnership Agreement (EPA) with the European Union (EU), Uganda still believes that all is not yet lost. Already Rwanda and Kenya have gone ahead to sign the deal, with the former’s Parliament even ratifying it. As for Tanzania, she has refused to append her signature on the dotted lines after raising several objections which ultimately resulted in the Tanzanian Parliament voting against the deal. Meanwhile, Daily Monitor understands that Uganda and Burundi who are yet to sign the pact, are reading from the same script, with the latter playing a leading role to broker consensus among the split member states. In a meeting last week at the ministry of Trade in Kampala with Mr James Wharton, the U.K Undersecretary of State for Trade/DFID, Ms Amelia Kyambadde, the Trade minister, said Uganda is ready to sign the agreement, although it will prefer to sign it as a block. She, however, said a meeting of the regional heads of state will happen soon and a decision regarding the pact will be arrived at, stressing that as a country, Uganda is committed to signing the deal. On his part, Mr Wharton, said even as they are negotiating their way out of Brexit, something that could take not less than 24 months, he urged that the deal be concluded amicably. When interviewed for this article last week, the Permanent Secretary, ministry of Trade, Amb. Julius...

Arusha. The postponed summit of the East African Community (EAC) leaders will be held early next month as the region continues to be divided over the Economic Partnership Agreement with the European Union. The meeting of the heads of state, which was initially scheduled for Dar es Salaam yesterday, will be held in Arusha on April 6 following consultations between EAC secretary-general Liberat Mfumukeko with the leaders of the partner states. “The upcoming 18th summit is scheduled for Arusha on April 6,” affirmed the EAC boss in Nairobi on Friday last week after holding talks with Kenyan President Uhuru Kenyatta. During the 17th Extra-Ordinary Summit of the regional organisation held in Dar es Salaam last September, it was agreed that the EPA stalemate be tabled again during the meeting of the regional presidents early this year. Tanzania, which has spearheaded its rejection against the EAC-AU trade arrangement deal, was given until the following meeting of the EAC heads of state to decide whether to ratify the pact or reasons for the delay. EAC-EU-EPA negotiations started in 2002. It was not until 2007 that the framework agreement on tariff was finalised. The East African countries had committed to liberalise up to 82.6 per cent of imports from the EU by value. But the process was interrupted in July last year, when Tanzania, Burundi and Uganda declined to ratify the deal, preferring further consultations on economic implications. Officials of Customs and Trade Directorate at the EAC secretariat could not be reached to...

On the third floor of Rwanda Revenue Authority (RRA) headquarters in Kimihurura, a City of Kigali suburb, modern flat screens beam images of cargo trucks as they enter, transit and exit Rwanda. Beside the screens is a Google map with a tracker of Rwanda’s two main routes to and from the sea—the Northern and Central corridors—tracking the movement of trucks carrying Rwanda bound and transit cargo. This is the Central Monitoring Centre (CMC), the watchtower of RRA’s newly installed Electronic Cargo Tracking System (eCTs). The eCTs is a web-based system used to monitor transit cargo from the point of entry to the exit in order to improve its safety and promote fair terms of trade by eliminating offloading of undeclared goods on the Rwandan market. The system will reduce the cost of doing business by reducing transit time, enhancing cargo safety and helping traders to better predict arrival of goods. Funded by TradeMark Africa (TMA) through a grant from the United Kingdom Department for International Development (DFID),the system will be launched in March 2017 and will add to on-going efforts to reduce the cost of doing business in the region, through improved cargo predictability, increased truck turn-around time that will ultimately lead to lower transport costs. Transport delays and cargo theft are among the key concerns to importers and exporters who have been forced to pay high insurance cover for goods on transit, adding to the already high costs of doing business in the country. With improved security of cargo,...