Pressure builds on KRA to replace customs system to boost cash collection

It is feared that Kenya could lose out on revenue from cargo clearance and related trade activities within the East African common market if it fails to integrate its customs system with that used by member states.

The country has invited tenders for provision of a new customs software to replace the current Simba system, and industry players have asked that the Kenya Revenue Authority (KRA) ensure the winning bid’s system can work with what is already in use across the regional trading bloc.

“Logically, Kenya should consider joining its partners in the EAC in utilising the gains of the Asycuda++ customs management system,” said Cynthia Mayaka, a tax manager at PWC Kenya.

“The Government has already sought bids for the provision of an automated customs management system from interested suppliers, and has forecast 2015 as the year in which the new system shall be piloted.”

Improved efficiency

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The roll out of the new customs system will be funded jointly by the Government and TradeMark East Africa (TMEA).

Its implementation will include integration with the Kenya National Electronic Single Window System (KNESWS) and Integrated Tax Management System (iTax).

It will also interface with KRA’s payment gateway system, the Electronic Cargo Tracking System (ECTS), the National Public Key Infrastructure (PKI) platform, Regional Customs System and Road Transport System, among others.

Currently, Kenya’s partners in the EAC are using the Automated System for Customs Data (Asycuda++), developed by the United Nations Conference on Trade and Development (UNCTAD).

This system promises secure customs revenue collection, improved efficiency in customs operations and standardised data extraction on international trade.

Kenya needs a customs system that is able to exchange customs declaration information with Asycuda++, a system adopted by regional landlocked countries that depend on the Mombasa Port for cargo importation.

All EAC countries are on the Electronic Single Window System where parties involved in trade and transport can lodge documents electronically for processing and approval, as well as pay fees, levies, duties and taxes on imported or exported goods.

At border posts, this platform is expected to reduce the cargo dwell time for both transit and intra-regional trade consignments to a maximum of one hour.