Nearly 6,000 users have been enlisted on the single online portal for lodging trade documents, boosting efficiency in the clearance of cargo. Treasury secretary Henry Rotich said the portal, known as Kenya Tradenet System, which was launched in 2013, had led to faster handling of the papers. “The system has also helped reduce incidents of corruption and enhanced service delivery for private and public entities,” he said in a speech read on his behalf by KenTrade chairman Joseph Kibwana during the launch of the agency’s Mombasa office.
Previously, cargo clearing transactions involved physical approval of paper work leading to wastage of time. “These requirements, together with the associated compliance costs constitute a burden both to government and to the business community. This has been a major barrier to the development of domestic and international trade in Kenya and the region in general,” the official said. When fully operational, the system, which was rolled out in October 2013, will provide a single entry point for importers and exporters to electronically submit and receive approvals from 27 regulatory agencies. This is expected to make the processes faster and reduce costs of cargo clearance.
It is projected that the system will save the economy $150 million (Sh15.7 billion) in the first two years, $200 million (Sh21 billion) in the third year and up to $500 million (Sh52 billion) over the next five years. Kenya TradeNet was set up with funding of $3.5 million (Sh367.5 million) from Investment Climate Facility (ICF), which is funded by the World Bank. ICF chief executive officer William Asiko said Kenya’s system was among 40 countries that have set up such a trade enhancing platform. This online facility enables traders and transporters to lodge standardised information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements.
Pilot project
The system encourages interoperability in the systems of stakeholders involved in trade logistics. Several agencies including the Kenya Bureau of Standards (Kebs), the Kenya Revenue Authority (KRA) and Kenya Ports Authority (KPA) are already operating on the platform that has also been piloted by other East African Community (EAC) partner state, Rwanda.
Source: Business Daily

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