Technology has greatly helped to boost revenue collection

Opinion
By Lilian Nyawanda | Feb 13, 2023

In the last couple of years, there has been exponential growth in international trade globally. Customs administrations are key players in international trade as frontline agencies in the clearance of goods, people and means of conveyance across borders.

This growth has meant an increased workload for Customs as officials have to clear a large number of consignments as well as passengers. To enhance operational efficiency, Customs Administrations have employed technology by automating most of their processes including the processing of declarations, risk management, revenue assessment and collection, post clearance audit, among others.

Kenya Revenue Authority's Customs and Border Control has not been left behind, transitioning from what used to be very long endless truck queues, extending as far as 25km at border points, a surge in smuggling, slow clearance taking as long as a week or two, to efficient clearance services with malpractices being detected instantly.

The efficiency is made possible by the technological changes with KRA having 33 serviceable scanners, across the country. Initially, Customs officers perused cargo manually, now the 33 scanners are interlinked to the Integrated Scanners Command Centres at Times Towers, JKUAT Towers and Mombasa Command Centre, enhancing transparency in the entire process.

This is achieved through real-time monitoring, faster clearance of cargo facilitated by the use of non-intrusive inspection and provision of intelligence to facilitate targeted inspection.

The technological investments have borne fruit, with revenue compliance from 86 per cent in June 2018 to 98.6 per cent as of January 2023. Scanners have sealed revenue loopholes, enabling KRA to surpass most of its revenue targets over the last several years.

Further, the improved efficiency in Customs processes has reduced the time and cost of compliance for traders, contributing to the overall ease of doing business and positioning Kenya as a key investment destination while at the same time creating a level playing field for businesses.

Among the technological systems enhancing Customs revenue include the Integrated Customs Management Systems (iCMS) platform (which automates all core mandates as a one-stop system for Customs processes). The platform handles processes such as Customs declarations, revenue assessment and payment, intelligence-based risk management as well as post-clearance audit. All the functions supporting cargo clearance are domiciled within iCMS.

To enhance regional trade through trade facilitation, KRA in partnership with the Revenue Administrations of the EAC Partner States (Uganda and Rwanda) have implemented the Regional Electronic Cargo Tracking System. The system enables real-time tracking of transit cargo from the port of Mombasa to its final destination through an online digital platform.

Ms Nyawanda is the commissioner for Customs and Border Control at KRA.

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