implementation of the single window system in kenya 2015

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

Presentation Outline

1. Background

2. SWS Project in Kenya

3. Project Stakeholders

4. Project Status

Tuesday, February 10, 2015 2

4. Project Status

5. Key Achievements

6. Challenges, Success factors & Lessons learnt

7. Recognition

8. Single Window Systems in EAC

9. Areas of cooperation

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

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

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.

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


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

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

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

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

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.

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


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

Benefits to Business1. Simplified trade information exchange

2. Faster trade documentation processing - electronic

3. Reduced errors with minimized data re-entry


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

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


•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

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.

Project Stakeholders

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

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

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

Project Status

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.

Launch of the Kenya TradeNet System - May 2, 2014

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

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

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

Key Achievements

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

Implementation Challenges, Success Factors & Lessons learnedFactors & Lessons learned

Implementation challenges1. Resistance to change 7. Inadequate legislation

2. Scope Creep 8. Inadequate funding

3. Payments System Challenges 9. Data Harmonisation challenges


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.

Key Success Factors

1. Strong political goodwill and Government support

5. A strong business case

2. Development partners’ support 6. Sustained stakeholder


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.

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


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.

RecognitionRecognition


CIO100 Awards 2014: Best Public Sector ICT Project

Single Window Systems in the EAC RegionSingle Window Systems in the EAC Region

33

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

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.

35

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.

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.

36

Areas of CooperationAreas of Cooperation


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


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

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


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

KENTRADE Contact Centre

Questions

Thank You

implementation of the single window system in kenya 2015

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