Kenya, Rwanda and Uganda have struck a deal to jointly clear cargo at the Kilindini port and monitor consignments on transit on a single electronic platform. Kenya Revenue Authority (KRA) commissioner-general John Njiraini said the regional cargo tracking system would enable the three countries to seamlessly monitor cargo from Mombasa to Kigali and eventually Juba, curbing revenue leaks. “This approach will remove the opportunities presently exploited by crooks at the changeover of seals at border points by requiring affixation of only one seal to be disarmed on arrival at destination,” he said. Mr Njiraini said the countries at meeting in Mombasa on January 16 agreed to establish joint enforcement teams to police transit cargo operations, besides other actions including the centralisation of transit cargo clearance at Kilindini port. The tracking system comprises satellites, a central monitoring centre and special electronic seals fitted on cargo containers and trucks, which give the precise location of goods in real time. The system triggers an alarm whenever there is diversion from the designated route, an unusually long stopover or when someone attempts to open a container. Besides curbing theft of cargo, the system also helps to seal loopholes that cause the country losses in revenue through suspected under-declaration of the value of exports or theft of cargo. “The new system’s key strength is that unlike presently, the three Northern Corridor countries, shall use one system and one platform, with seamless visibility from Mombasa to Kigali and eventually Juba,” Mr Njiraini said. The KRA in...

NAIROBI: Kenya Revenue Authority (KRA) will be counting on the roll-out of the new Cargo Management System (ICMS) coupled with other investments in technology to boost its tax revenue collection by sealing tax loopholes. KRA Commissioner John Njiraini said that the process of replacing the outdated Simba system with ICMS will be fast-tracked to ensure it is in place before the end of the year. Initially slated for last year, ICMS implementation had been halted by a law suit which was challenging the manner in which the tendering process was carried out. However, KRA got a lifeline after the High Court dismissed the law suit in December last year. “ICT is not a choice for us but the only way through which we can deliver on our business. The new system is superior and will aid risk management, security targeting and valuation of cargo,” said Mr Njiraini yesterday during celebrations marking this year’s International Customs Day. During the function, ICT Cabinet Secretary Joe Mucheru who was represented by his permanent secretary, commended KRA for embracing new technologies saying it’s critical to efficient service delivery. With the new system, the taxman also hopes to improve governance in areas such as customs auctions by creating an online virtual platform. Further, it will provide better connectivity with the regional counterparts through exchange of data. The new system coupled with the ongoing roll-out of the ingle Window Platform, will enable those involved in international trade to conveniently transact from the comfort of their premises....

KENYA Revenue Authority anticipates less paperwork and faster clearance for transit goods once the new electronic cargo tracking platform is completed in June. Commissioner general John Njiraini said work is also underway to upgrade customs systems to the integrated cargo management system. Both systems are fully funded and implemented by Trade Mark East Africa. “We went for a completely new platform that will give us flexibility in dealing with customs issues including valuation, risk profiling to verify cargo, handling customs functions and online real time customs auctions,” he said yesterday, during the International Customs Day. The system will be gradually rolled out to replace the current Simba system, and should be fully functional in three East African countries in the next 18 months. It will replace the current Simba 2014 platform which was upgraded last year from the original Simba platform that had been in use since 2005. Njiraini said the new system will provide a better link between Kenya, Uganda and Rwanda which will operate on the single customs clearance platform. There are plans to extend the same to Juba, South Sudan later. Trade Mark East Africa started work on the new system this month after winning round one of a court battle over the tendering process in December 2015, said Njiraini. He said the authority will revamp its official website and social media platforms to engage customers better through asking feedback about the company's products, handling of concerns and other services. Njiraini said the the new initiative will...

Kenya Revenue Authority (KRA) on Tuesday put in place fresh measures aimed at curbing tax evasion at entry points. To meet its targets, the taxman will appoint the authority’s first head of enforcement and border control within the Customs and Border Control Department. KRA commissioner general John Njiraini said a new holder of the position will boost “national security and efficiency” in the country’s customs management.
 A head of enforcement and border control designate, Mr Njiraini said, has extensive security sector experience. Mr Njiraini who spoke as the authority started observing the International Customs Day in Nairobi, added that a variety of extra reform measures would boost revenue collection for the State agency. They include implementation of a new customs management system, which kicked off this month. “When fully implemented, the new system will replace the current Simba system, which has been in use since 2005. The new system will have more superior features that will aid better practices in risk management, security targeting and valuation of cargo. Moreover the system will also provide solutions that will enhance governance in hitherto problematic areas such as customs auctions through creation of an online virtual auction platform,” he said. SINGLE CUSTOMS SYSTEMS Mr Njiraini said KRA is equally engaging its regional counterparts to develop an integrated single customs systems. “Work has already started to install a new electronic cargo tracking platform that will enable seamless visibility of transit cargo along the Northern Corridor countries of Kenya, Uganda and Rwanda,” he said. “Customs...

Nairobi 21st January, 2016…East Africa private sector body, East Africa Tourism Platform (EATP) has emerged First runner up of the UNWTO Award for Innovation in Public Policy and Governance for its multi-destination knowledge management tool at the 12th UNWTO Awards EATP was among a total of 17 projects from Africa, Latin America, Asia and Europe that were selected from a total of 109 candidacies, as finalist of the 12th UNWTO Awards on Excellence and Innovation in Tourism. Winners in the four categories of Public Policy and governance, Research and Technology Enterprises and Non-Governmental Organizations (NGOs) were announced Wednesday night at the UNWTO Awards Ceremony and gala dinner at Fitur in Madrid, Spain. [caption id="attachment_11574" align="alignleft" width="600"] The East Africa Tourism Platform Executive Director Ms. Carmen Nibigira during the award UNWTO Awards Ceremony and gala dinner at Fitur in Madrid, Spain on 20th January 2016[/caption] The Award recognizes initiatives that are highly innovative and managed by a public or public-private institution that reflects tangible and sustainable improvements in policy, processes, and governance. Speaking after receiving the award on behalf of the 5 countries, EATP Regional Co-ordinator Ms Carmen Nibigira says the Multi-destination Knowledge management tool developed by EATP was nominated and awarded for its works towards an inclusive model of tourism governance which involves diverse tourism stakeholders. “Through this tool, regional tourism stakeholders have started trading each other’s products, packaging tourism products without borders, bench-marking amongst themselves and learning from each other. We are one people, but with a rich cultural...

Rwanda's campaign to diversify its exports to cushion the economy against a growing trade imbalance, may take a little longer, with agricultural exports falling by 29 per cent due to depressed international commodity prices. In the first 11 months of last year, exports fell to $65.2 million from $91.7 million during the same period in 2014, according to the National Agricultural Export Board (Naeb). The trade imbalance was widened as seven out of the 13 leading agricultural exports — pyrethrum, hides and skins, cereals, pulses, root tubers (cassava), live animals and banana — dipped. Tea exports recorded positive growth, expanding 40.16 per cent while horticultural exports grew by 41.33 per cent. But the two agricultural exports did little to narrow the trade gap, which stood at $96.14 million’s worth of exports compared with $481.10 million of imports. The trade deficit was worsened by the growing demand for agricultural products boosted by World Food Programme sourcing cereals locally to feed hundreds of Burundians and Democratic Republic in refugees’ camps in Rwanda. NAEB figures show that for the months of August and September (2015) there was no formal export of maize and wheat flour, and from July to September no formal export of maize and sorghum. Export receipts from skins and hides also dipped largely due to the growing local demand from Chinese investors. One of the investor — Kigali Leather Ltd — has a capacity to process 60 containers of skins and hides. Despite the growing local market, analysts insist that...

Countries qualifying for duty-free access to US markets under the Africa Growth and Opportunity Act (Agoa) must adhere to US trade regulations as well as its foreign policy. This is a new rule enacted by the US Congress last year after the renewal of the US–Africa trade partnership for another 10 years. According to EAC Director General of Customs and Trade Peter Kiguta, under the new rule, a country that goes against any of these requirements is suspended from Agoa for a period to be determined by the US government. “The eligibility criteria will worsen with time because US trade representatives are expected to report on the eligibility of individual country every year and if found ineligible, a country’s goods will not have access to the US market,” said Mr Kiguta. Last week, the US and South Africa reached an agreement on importation of American pork shoulder cuts and beef. In November, the two had reached yet another agreement on poultry products. South Africa is the second country to face suspension after Burundi under the new rule. Last year October, President Barack Obama announced that Burundi would be ejected from Agoa in January for its “continuing crackdown on opposition members, which has included assassinations, extra-judicial killings, arbitrary arrests, and torture.” African countries’ agricultural produce enjoy a zero-tariff rate for about 6,800 product line through Agoa without any reciprocity required for US goods. “For African countries to expand their trade partnership with the US market, we need to negotiate a preferential trade agreement...

Kenya’s import orientation has revealed key flaws. One clear problem is having a chronic and substantial current account deficit. Secondly the government has to be hawk-eyed about the shilling depreciation to keep import bills manageable. Third, the country is unable to generate forex to pay foreign-denominated debt. Finally, Kenya’s import economy exacerbates the country’s unemployment problem. How so? As an import economy we are essentially exporting jobs by hiring people from other countries to make goods for us to buy. Thus there is a reason for serious conversation on how to re-orient the economy to be driven by manufactured exports and not the export of raw commodities. If Kenya becomes a net exporter of raw commodities, be they agricultural or fuels and metals, the country will simply fall into the resource trap that so many African countries find themselves in where they cannot determine the value of their exports, thus falling victim to fluctuating commodity prices. An export orientation rooted in industry and manufacturing is a means of avoiding this trap and will allow the country to have greater control of the pricing of exported goods. Further, an export orientation is advantageous because momentum will shift from having a current account deficit to a surplus, and this would be good news for several reasons. Not only would the government be comfortable with the devaluation of the shilling (where the momentum is at the moment), but exports also generate forex that the State can use to build reserves and to easily...

The Kenya Revenue Authority (KRA) has started vetting afresh all the container freight stations (CFS) and those that will not meet prescribed requirements shall be struck off the list and become ineligible to receive cargo. Speaking on Friday during a dinner held by the Kenya International Freight and Warehousing Association (KIFWA), KRA Commissioner General John Njiraini said the re-vetting was informed by the need to weed out malpractices in the shipping industry. “Towards this end, a re-vetting process has commenced that involves a cross-section of Government agencies, with the aim of determining the suitability of the CFSs in existence,” he said. Njiraini said the process will assess a broad spectrum of issues including the integrity of proprietors and key management of freight stations. Until then, the ban imposed in August 2012 on fresh licensing of CFSs would stay in force, added Njiraini. The taxman is also working on re-organising the processes used in assessing suitability for licensing of clearing agents, noting that of all the major vocations only clearing and forwarding lacks a properly structured learning and qualification process “Because of the weak regulatory regime, the business continues to attract persons of dubious character and for whom no effective disciplinary regime exists,” he said. He revealed that a legal framework to govern the training, certification, licensing and regulation of clearing and forwarding agents has already been developed. “This will place the sector at par with other equally critical professions including accountancy, law and the sciences,” he said during the event...

THE Federal Republic of Germany has signed an inter-governmental agreement with the East African Community (EAC) to support the economic integration, regional health facilities and water resource management. Germany signed a total of 37 million euros in grants to the EAC for 2016-2018, highlighting the strong commitment to support the integration process in East Africa. The EAC Communications Officer, Mr Richard Owora Othieno, revealed here that 10 million euro in financial assistance will be invested in the establishment of a regional network of reference laboratories for communicable diseases. With this project, the German government responds to a request for support from the EAC for the prevention and control of epidemic outbreaks in the region. Another 10 million euros in financial assistance will be used for Integrated Water Resource Management of Lake Victoria aiming at improving water provision and management of water resources. Both projects will be implemented by KfW development bank. On the other hand, the 17 million euros in technical assistance will be made available to further support of the economic integration process, including a contribution to the EAC partnership fund. The programme is focusing on institutional strengthening of the EAC Secretariat and on supporting the implementation of the Customs Union, Common Market Protocols and Monetary Union. This includes the elimination of Non- Tariff Barriers such as tax harmonisation as well as Mutual Recognition Agreements for qualifications. At the same time Germany will support the EAC in promoting private investment especially in the pharmaceutical sector, including the establishment of...