By Nicholas Waitathu

Kenya: East Africa Community (EAC) yesterday entered a new dawn as countries started implementing the Single Customs Territory (SCT).

Under the new trading system each of the five countries will have customs officials stationed at all points of entry into the community to collect duty. 

Trade stakeholders in the region welcomed the start of the new initiative and said it would reduce cost of doing business in the region by between 15 per cent and 30 per cent.

Kenya Revenue Authority (KRA) confirmed the process kicked off well in all stations where the regional countries had deployed customs officials. Kenya Shippers’ Council Chief executive Gilbert Langat noted that the approach would enhance trade within the region.

“We expect the five countries to aggressively participate in the implementation of the SCT,” he said in a telephone interview yesterday. “Doing so will assist in professionalising trade in the region and help us get rid of brokers who contribute to the high cost of doing business,” added Langat.  

He said a return journey transporting cargo from Mombasa to Kigali would take less than 10 days compared to the 20 days trucks currently take, adding that there would also be less checks along the route.  

“Further we expect there will be more trucks to be deployed to carry goods from Mombasa into the region as number of licenses and checks will drastically reduce,” he said. 

The January 1, 2014 commencement date of the SCT was agreed upon during a summit in November 2013 that brought together presidents from the five East African Community (EAC) partner States of Kenya, Uganda, Rwanda, Burundi and Tanzania. East African Business Council (EABC) Chairman Vimal Shah hailed the new initiative and noted that it would graduate the region into a one-stop shop and thus promote trade.

Promote trade

“This is a sound approach in terms of trade facilitation in the region. However, it is early for the countries to celebrate as a lot of commitment by the governments, trade players among other actors to ensure full implementation,” said Shah.

Senior deputy commissioner Beatrice Memo confirmed that the process kicked off well at Mombasa oil installations in Western Kenya.

She said that already two countries had deployed their customs officials at Mombasa port as part of the implementation of the new trading initiative.

“So far, there are customs officials from Uganda and Rwanda deployed at Mombasa and oil installations in Western Kenya–Nakuru, Kisumu, and Eldoret,” said Memo yesterday.

She added that the customs authorities have up to June this year to ensure all the operational requirements are in place as was directed by the summit last November.

 “The implementation of the new system will ease customs management in the region and boost countries revenue levels,” she stated in phone interview.

The Customs Union Protocol, which made provision for the SCT, was launched in 2005.