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Implementation of the Single Window System in Kenya
Presentation to:
African Alliance for Electronic Commerce Meeting- Dakar, Senegal.
Venue: Hotel Decameron
Date: Monday, February 2nd , 2015
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Presentation Outline
1. Background
2. SWS Project in Kenya
3. Project Stakeholders
4. Project Status
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4. Project Status
5. Key Achievements
6. Challenges, Success factors & Lessons learnt
7. Recognition
8. Single Window Systems in EAC
9. Areas of cooperation
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Background
2005 : Preliminary assessment of a Port Community Based System
(PCBS) Project – Conceptualization of the PCBS
2006 : Started Port Based Community System Project
� Spearheaded by KPA and KRA
� Steering Committee -MD -KPA & KRA- CG
2007 : Why Kenya National Electronic Single Window System
� Cross cutting national Project –conceptual approach
� Include all Government regulatory agencies
� Give initiative GoK authority
� Trade facilitation a GoK function
� Steering Committee elevated to Government /Ministerial level
PS Treasury-Chair, PS Transport, PS Trade, KPA.KRA.KEBS
2011 : Kenya Trade Network Agency - KENTRADE
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Background – Cont’d
� A State Corporation established in January 2010 vide LegalNotice No 6 of 2011.
� Principal Objectives:
� To Facilitate International Trade� To Facilitate International Trade
� To implement, operationalize and manage the KenyaElectronic Single Window System (Kenya Tradenet).
� Parent Ministry:
� National Treasury
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Background: Why Single Window?
� Trade procedures in Kenya have been inefficient, lengthy and slow resulting in high cost of trade transactions/doing business. The main reasons are as follows:
� Many stakeholders involved in cargo clearance process.
� Stakeholders exchange many documents among themselves.
Stakeholder ends up sending the same document to each � Stakeholder ends up sending the same document to each other many times.
� Exchanges are in hard copy form and in most cases, processing of information is carried out manually.
� Perennial congestion at the port, long truck queues at the border posts, corruption,
� Underutilization of port facilities, and ultimately, loss of competitiveness for the country.
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Kenya’s Ease of Doing Business Ranking
Ease of Doing Business in
Population 44,353,691
GNI Per Capita (US$) 930
Doing Business 2015 Rank Doing Business 2014 Rank*** Change in
Rank
136 137 1
Topics DB 2015 Rank DB 2014
Rank
Change in
Rank
Starting a Business 143 134 -9
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Starting a Business 143 134 -9
Dealing with Construction Permits 95 35 -60
Getting Electricity 151 151 No change
Getting Credit 116 111 -5
Protecting Minority Investors 122 118 -4
Paying Taxes 102 146 44
Trading Across Borders 153 152 -1
Enforcing Contracts 137 137 No change
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Inefficient processes addressed by the Kenya Electronic Single Window System
KRA
PCPB KPA PPB
Other related government agencies
NBAKEBS
Many government regulatory agencies
Chamber of Commerce
TBK
Carriers
Importer/Buyer
Exporter/Seller
Freight Forwarder/Shipping
Insurance Company
Numerous lodgments
Many Duplicated data elements
ACA
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Results of Inefficiencies
Tons of trade documentsCongestion at Borders & PortImpossible d'afficher l'image. Votre ordinateur manque peut-être de mémoire pour ouvrir l'image ou l'image est endommagée. Redémarrez l'ordinateur, puis ouvrez à nouveau le fichier. Si le x rouge est toujours affiché, vous devrez peut-être supprimer l'image avant de la réinsérer.
Impossible d'afficher l'image. Votre ordinateur manque peut-être de mémoire pour ouvrir l'image ou l'image est endommagée. Redémarrez l'ordinateur, puis ouvrez à nouveau le fichier. Si le x rouge est toujours affiché, vous devrez peut-être supprimer l'image avant de la réinsérer.
Human Intervention leading to corruption
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The Solution -Single Window System
� UN CEFACT RECOMMENDATION 33;
� A facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfill all import, export, and transit-related regulatory requirements.
Trader or Agent submits all Trader or Agent submits all information required for clearance once to the Single Window System
Responses from various
Authorities and Financial
Institutions are returned to
Trader or Agent
Kenya Revenue Authority
Kenya Ports Authority
Other ControlAgencies
Banks
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Bali Package & Single Window Systems
� The Bali Package - a trade agreement resulting from the 9th
Ministerial Conference of the World Trade Organization held in Bali, Indonesia from 3rd to 7th December 2013.
� Single Window Systems relevant to implementation of 8 of the 13 articles of the Trade Facilitation Agreement. 13 articles of the Trade Facilitation Agreement.
� Article 7: Release and Clearance of Goods
� Article 10: Formalities connected with Importation and
Exportation and Transit most significant.
� Article 10 specifically encourages member states to establish and maintain Single Window Systems.
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Benefits to Government1. Enhanced Revenue yields 7. Enforcement of controls laid down by
domestic policies and International agreements
2. Improved trader Compliance 8. Improved international competitiveness of Kenya
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3. Enable use of sophisticated “Risk Management” techniques for control and enforcement purposes
9. Facilitate economic growth – Vision 2030
4. More effective and efficient deployment of resources
10. Improved Infrastructure utilization at ports
5. Availability of Trade Statistics 11. Enhance Transparency
6. Enhance e-Government G2B, G2G
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Benefits to Business1. Simplified trade information exchange
2. Faster trade documentation processing - electronic
3. Reduced errors with minimized data re-entry
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3. Reduced errors with minimized data re-entry
4. Improved efficiency & transparency – eliminates manual processes
5. Lower business costs e.g. port storage charges
6. Security in supply chain process -traceability
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Benefits to the Kenyan Economy1. Based on the volume of goods imported/exported:-
•First 3 years – US$ 150m and US$ 250m per annum •Thereafter - US$ 300m to US$ 450m per annum
2. Arising from improved services e.g.•Reduced trade transaction costs
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•Reduced trade transaction costs•Reduced delays•Reduced Inefficiencies •Reduced corruption•Reduced manual documents/paperwork•Reduced cost of capital ( JIT Concept)•Reduced demurrage•Improved space utilization at ports/Airports-Increased capacity utilization
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Average Cargo Dwell Time
GovernmentEnterprisesCurrent Single Window Objective
7 days maximum - 3 days7 days maximum - 3 days
5 days
2 days
maximum - 1 day
maximum - 1 hr.
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Project Stakeholders
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Project Stakeholders (27)Project Stakeholders
1. Kenya Revenue Authority 7. Horticultural Crop Development
Authority
2. Kenya Ports Authority 8. Directorate of Veterinary Services
3. Kenya Bureau of Standards 9. Kenya Sugar Board
4. Kenya Plant Inspectorate Service 10. Kenya Dairy Board
5. Pharmacy & Poisons Board 11. Radiation Protection Board
6. Port Health 12. Pest Control Produce Board
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Project Stakeholders (27)Project Stakeholders – Cont’d
13. Directorate of Mining 19. Anti-Counterfeit Agency
14. Kenya Wildlife Services 20. Kenya National Police Service
15. Central Bank of Kenya 21. Kenya National Chamber of Commerce & IndustryCommerce & Industry
16. National Biosafety Authority 22. Ethics and Anti-Corruption
Authority
17. Agriculture, Fisheries and Food
Authority - Tea Directorate
23. National Environment
Management Authority
18. Nursing Council of Kenya 24. Kenya Maritime Authority
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Project Stakeholders (27)Project Stakeholders – Cont’d
25. Office of Intermodal Freight
Management) of the DR Congo
(OGEFREM)
31. Kenya Bankers Association
26. Kenya Medical Laboratory
Technicians and Technologists Board
32. Association of Kenya Insurers
27. The National Treasury 33. Kenya Ship Agents Association
28. Kenya Association of Manufacturers 34. Container Freight Stations Association of Kenya
29. Kenya International Freight & Warehousing Association
35. Kenya Groupage Cargo Handling
Association
30. East African Shippers Council
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Project Status
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Project Status
• October 31, 2013 – Kenya TradeNet System go live
• May 2, 2014 – Official launch of the System.
• 3 Project Phases
� Phases 1A – Pre-clearance Documentation Modules
� Phase 1B – Declaration Submission Module
� Phase 2 – Permits Module
� Phase 3 – Permits Module
� Implementation of 16 Modules & functionalities completed.
� Implementation of 4 Modules & functionalities ongoing.
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Launch of the Kenya TradeNet System - May 2, 2014
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Implementation Status: Completed Modules
Module/ Functionality Date Gone Live
1. Unique Consignment Reference (UCR) Oct 31, 2013
2 Impending Arrival Report (IAR) Dec 02, 2013
3 Bay Plan (BAPLIE) submission Mar 28, 20143 Bay Plan (BAPLIE) submission Mar 28, 2014
4 Manifest Sea Mar 28, 2014
5 Manifest Air Apr 15, 2014
6 Permits Mar 28, 2014
7 Import Declaration Form (IDF) Mar 28, 2014
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Implementation Status: Completed Modules
8. Payments Oct 31, 2013
9. Availability of attachments Oct 31, 2013
10. Cargo Release Nov 21, 2013
11. Reports Nov 15, 2013
12 User Admin Oct 31, 2013
13 Integration with Kenya Revenue Authority
systems
Oct 31, 2013
14 Integration with Kenya Ports Authority
Systems
Oct 31, 2013
15 Integration with KEPHIS System Oct 31, 2013
16 Dynamic Risk Management Sept 31, 2014
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Implementation Status: Ongoing Modules
A. Pending Modules/ Functionalities Completion Date
1. Security Bonds February 28, 2015
2. Declaration Submission February 28, 2015
3. Exemptions Module February 28, 2015
4. Outbound Processes February 28, 2015
B. Other Ongoing Activities Completion Date
1. Permits - Phase 3 Training of End Users ( C & F Agents, PGAs)
January 31, 2015
2. Declaration Module Training of End Users ( C & F Agents
February 28, 2015
3. Piloting of Declaration Module February 28, 2015
4. Outbound Processes February 28, 2015
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Key Achievements
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Key Achievements
� Unique Consignment Reference (UCR) Module - new concept in Kenya.
� Electronic application of permits by the traders on 24 hours basis.
� Electronic processing and approval of permits by the PGAs.
� Electronic confirmation of Payments and provision of multiple paymentsinstruments. Ksh 124,875,700.00 (USD 1,387,508) has been collected byinstruments. Ksh 124,875,700.00 (USD 1,387,508) has been collected bygovernment agencies through the SWS Payment Gateway.
� Integrated Risk Management System accessible by a number of the PartnerGovernment Agencies.
� Full Integration with 3 major stakeholder systems (KRA, KPA, KEPHIS). Ongoingintegration work with other Agencies.
� Real-time generation of reports
� Compliance levels have gone up e.g. traders have to provide permits
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Implementation Challenges, Success Factors & Lessons learnedFactors & Lessons learned
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Implementation challenges1. Resistance to change 7. Inadequate legislation
2. Scope Creep 8. Inadequate funding
3. Payments System Challenges 9. Data Harmonisation challenges
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4. Low ICT maturity of some PGAs 10. National Telecommunication Infrastructure limitations
5. Slow roll out due to lethargy by some PGAs
11. Uncoordinated system developments among PGAs.
6. Large number of PGAs involved (24)
12. Slow resolution of issues by PGAs during piloting.
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Key Success Factors
1. Strong political goodwill and Government support
5. A strong business case
2. Development partners’ support 6. Sustained stakeholder
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2. Development partners’ support 6. Sustained stakeholder engagement
3. Clear requirements specification 7. Diverse & Competent Project Implementation Team
4. Competent Project Implementation Partner
8. A Practical Project Plan.
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Lessons learnt
1. Need for formalization of inter -organizational collaboration.
5. Continuous BPR to ensure optimal performance and improvement of processes.
2. Need for continuous engagement 6. Continuous knowledge transfer
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2. Need for continuous engagement with stakeholders (Internal & External ) e.g sensitization forums & trainings.
6. Continuous knowledge transfer through trainings , workshops , conferences.
3. Increased collaboration with relevant international bodies.
7. Competent project team.
4. Development of trade policy and legislation that governs implementation of SW concept.
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RecognitionRecognition
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CIO100 Awards 2014: Best Public Sector ICT Project
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Single Window Systems in the EAC RegionSingle Window Systems in the EAC Region
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NSW
GWNSW
Centralized Gateway ModelDistributed Gateway Model => ASW
Regional Single Window Models
NSW
NSW
Regional Service
GW
GW GW
GW
GW
NSW
Central GW
NSW
NSWNSW
RSW
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EAC National Single Window Systems Implementation Status
Country Single Window Implementation status
Remarks
Kenya Yes Implementation to be completed in April 2015.
Uganda No Funding obtained through TMEA & Implementation set to commence in October 2014.
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set to commence in October 2014.
Tanzania No Talks ongoing with TMEA to fund implementation.
Rwanda Yes, partially Stakeholders integrated are Rwanda Revenue Authority, Rwanda Bureau of Standards, Rwanda Development Board, Ministry of Health, Airlines & Clearing Agents.
Ethiopia No Project Implementation Team formed & Study Visits ongoing (KENTRADE Visited).
South Sudan No No known plans yet.
Burundi No Talks ongoing with TMEA to fund implementation.
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Towards a Regional SWS
� Under the leadership of the EAC Secretariat, develop and implement a cooperation framework.
� Assist the EAC region collectively by funding the EAC Regional Single Window System implementation Project.Single Window System implementation Project.
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Areas of CooperationAreas of Cooperation
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Areas of cooperation
Proposals for Funding
Area Description Estimated costs (USD)
Set up of Secondary site Setup of secondary site toensure high availability.Cost to cover servers,supporting software,storage, and network
6,000,000
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storage, and networkinfrastructure.
Automation of partner government agencies
In order to improve efficiency in the end to end process, it will be necessary to support the automation of back end approval processes and integrate the systems with the KNESWS. USD 200,000 per stakeholder.
2,000,000
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Proposals for Funding
Area Description Estimated costs (USD)
Implementation of the
KENTRADE Business
Model
The Kentrade business model has been developed with support of TMEA. The same needs to be implemented
700,000
Areas of cooperation – Cont’d
Tuesday, February 10, 2015 39
implemented
Set up of Facilitation
Centres at key border
stations. Set up and
out- source the
facilitation centres to
the youth for
management
Set up of each estimated at USD 50,000. Costs include
• Computers
• Furniture
• LAN/Electricals
• Rent for 1 year
250,000
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KENTRADE Contact Centre
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Questions
Thank You