Kenya is to launch an online cargo clearance system valued at US$22 million by the end of the year, intended to increase cross-border trade.
The online cargo clearance system is expected to reduce the clearance time through automated cross-border trade procedures.
The current system is reported to be costing the country approximately US$300,000 in losses due to cargo clearance delays.
The average of eight days clearance time under the current system will be reduced to a maximum of three days under the new system, which will be implemented in phases and established at Kenya’s main port in Mombasa, the main international airport and land border posts.
The first phase of the project will see the automation of all cargo documentation processes through the synchronisation of the systems of the Kenya Ports Authority (KPA), the Kenya Revenue Authority (KRA), the Kenya Bureau of Standards (KEBS) and the Kenya Plant Health Inspectorate Services (Kephis).
All of these bodies are involved with cargo clearance.
The second phase, which the country is aiming to implement in April next year will see the integration of the National Payments System (NPS) with the Single Window System, which will also incorporate mobile money and online banking.
This is expected to allow for an end-to-end electronic solution for logistics in trade.
Kenya will be joining the likes of Rwanda, which was the first country in East Africa to implement digital systems for cargo clearance.
Rwanda automated its cargo clearance systems last year and claims it saves US$9 million annually. The Kenya Trade Network Agency (KenTrade) will be responsible for implementing the system.
African countries that already have the operational single window in place include Ghana, Mozambique, Mauritius, Madagascar and Tunisia.
