What the new beginning with Kenya International Freight Warehousing Association means for trade in Kenya

The Memorandum of Understanding between Kenya Trade Network Agency (KenTrade) and Kenya International Freight Warehousing Association (KIFWA) signed in Nairobi on Monday this week is a  significant milestone in the Kenya’s trade logistic industry and indeed the entire trade facilitation movement in this strategic region of East Africa trading block. 

With the support of our development partner, World Bank Group, KenTrade and KIFWA are taking deliberate steps to formalise their engagement and relationship that have evolved with the automation of Kenya trade logistics sector. The MoU with KIFWA is the first among many planned by KenTrade when key industry actors is geared at advancing the Government’s transformative agenda on regional trade.

We value KIFWA and its national membership as important player in the ongoing reforms of Kenyan ports and cross border trade facilitation. Indeed Clearing and Forwarding Agents are our most significant stakeholders arguably because they are the crucial link between the Importers/Exporters on one hand and Permit Issuance Agencies on the other. 

KIFWA therefore has a greater stake in the Kenya’s Single Window System(Kenya TradeNet System) because its aforementioned members bears the blame from the Importer /exporter and also incur personal lose not mentioning reputation damage if cargo is not cleared on time or lost because of inefficiencies. 

The purpose of the MoU that KenTrade signed with KIFWA is to enable the KenTrade and KIFWA to enter into a non-exclusive, non-legally binding, collaborative relationship. This relationship is aimed at furthering the common interests of the two Parties in the future. It seeks to foster a collaborative framework between KenTrade and KIFWA with a view to benefiting from each other’s initiatives and working procedures.  

I have no doubt in my mind that the future of the trade logistic industry looks more promising than ever before with this step into formalisation of the long cherished relationship between the two parties. A quick look at about a dozen of areas of stated cooperation and fostering the synergy between KIFWA and KenTrade give me the confidence to hold onto this positive outlook. These include:

·     To work together in promoting and protecting interests of the legitimate trade in the EAC region.

·     To facilitate trainings for the business community and other stakeholders.

·     To promote a high standard of service to the business community (Importer/Exports).

·     To promote use of Kenya TradeNet System as a trade facilitation tool in Kenya and the EAC region

·     To promote the adoption of uniform documents and standard terms and conditions.

·     To work jointly in identifying areas of improvement in trade documentation including proposals on harmonization, reduction and rationalization of trade documentation.

·     To carry out research in areas geared towards improvement in trade processes to facilitate trade.

·     To collect, collate and circulate information and statistics relating to or affecting the business interests in the region.

·     To promote and maintain good working relationship between KenTrade, KIFWA and other stakeholders involved in trade logistics.

·     To advocate for improved business environment by advocating for enactment/compliance of business friendly legislation.

·     To enforce the Code of Conduct of the KIFWA among its members in the usage of Kenya TradeNet System.

 

As some of you are aware by now, the annual World Bank Report on Ease of Doing Business Ranking is expected to be released sometimes next month and ahead of the World Trade Ministerial Meeting and the quarterly Regional Heads of State Summit on Northern Corridor. KenTrade will also be commemorating the national rollout of the Kenya TradeNet System on October 31. 

The significance of the MoU signing is in its outcome which is expected to have a bearing on the aforementioned either as a reference or indicator to traction that Kenya is making with Trade Facilitation. In the last ranking, Kenya dropped from position 152 in 2014 to 153 in 2015 in the trading across borders global index. We are confident that the ongoing robust Port reforms including the cross border trade automation which fortunately enjoy tremendous goodwill and support of regional partner states will reverse this global ranking. 

KIFWA and KenTrade have demonstrated commitment to promote trade climate in Kenya through deliberate efforts to facilitate the import and export trade by ensuring efficiency and effectiveness in the cargo clearance process.  

With the signing of the MoU KenTrade and KIFWA are bound to ensure efficiency in processing of cargo clearance documents through the Kenya, training, research and compliance on Export, Import and Transit processes. I am glad that this MoU also places great emphasis on the innovative research and use of technologies for future developments. 

Let me thank World Bank Group for the tremendous support towards making this a reality. We are glad to take this tried and tested relationship with KIFWA to the next level for the benefit of the Kenyan trader. 

The author is the Acting CEO of KenTrade.This is abridged speech that he delivered during the MoU signing ceremony with KIFWA in Nairobi today (Monday)