TradeMark Africa is funding a new customs management system which will automate customs processes in Kenya. It will reduce the time to clear imports and exports by at least 60 percent.
Nairobi, 16th July 2014: TradeMark Africa (TMA) today signed a contract worth US$ 8.45 million with BULL SAS Ltd for the supply, installation and commissioning of a new integrated Customs Management System at Kenya Revenue Authority (KRA).
TMA, a specialist trade facilitation organisation in East Africa, is fully financing the new customs management system. This will modernise and improve the efficiency of the tax collectors’ customs management. The project will start in August 2015 and will take 18 months to complete.
Speaking at the signing ceremony, TMA Director General Mr. David Stanton said:
“We are happy and proud to sign this contract with Bull SAS, after a thorough, fair and transparent tender process. The signing of this contract marks a milestone in our partnership with the Government of Kenya, particularly KRA. Together, we want to reduce the costs of doing trade in Kenya and East Africa. This deal heralds an exciting new chapter in regional economic integration.”
Contacted for Comment, KRA’s Commissioner General Mr. John Njiraini said;
“This marks a new era for Kenya Revenue Authority. It is crucial for KRA to upgrade its Customs Management System and enhance its ICT infrastructure. In particular, KRA is exploring to overhaul its CMS as a way of seeking a permanent solution to the numerous challenges it currently encounters, which have impacted negatively on revenue collection and trade facilitation, which are both critical to realization of Kenya’s Vision 2030 objectives.’’
The new customs system simplifies and automates customs procedures, improving administrative efficiency and pre-clearance of imports and exports. It will lead to a reduction of time to clear imports and exports by at least 60%. Other gains include: pre-lodgement of more than 80% of customs documents; linkages with The National Single Window System to reduce complexity for traders in obtaining official approvals, and streamlining of processes between Kenya and other Revenue Authorities in the Region.
Efficiency means reduced cost of goods in the long term
Kenyans can expect big benefits of the iCMS in the longer term. Fewer delays in clearing imported or exported goods will be passed on to consumers in the form of lower shop prices, and will make Kenya the entry point of choice to and from the region, especially at Mombasa port.
Source: TradeMark Africa (TMA)
TradeMark Africa (TMA) is an aid-for-trade organisation that was established with the aim of growing prosperity in East Africa through increased trade. TradeMark Africa (TMA) operates on a not-for-profit basis and is funded by the development agencies of the following countries: Belgium, Canada, Denmark, Finland, the Netherlands, UK, and USA. TradeMark Africa (TMA) works closely with East African Community (EAC) institutions, national governments, the private sector and civil society organisations.
