Simplifying Trade Processes For Kenya Competitiveness

28th UN/CEFACT Forum

United Nations Conference Centre, Bangkok Thailand26th to 30th September 2016

Single Window Governance & ResilienceCase of the Kenya TradeNet System

By: Eugene WaluvengoManager ICT &

Project Director, Kenya Single Window System

Presentation Outline

KENTRADE

Kenya TradeNet System

Single Window Resilience preliminary thoughts

Single Window Resilience Aspects

Who we are: Kenya Trade Network Agency

A State Corporation

established in January 2010 vide

Legal Notice No 6 of 2011.

Principal Objectives:

To Facilitate International

Trade

To implement,

operationalize and manage

the Kenya Electronic Single

Window System.

Parent Ministry:

National Treasury

Kenya TradeNet System

Kenya TradeNet System is the name of the Kenya Single

Window System.

Important Dates

i. October 31, 2012 – Project Kick off

ii. October 31, 2013 – Kenya TradeNet System go live

iii. May 2, 2014 – Official launch of the System

Number of system users - Over 7,000 registered system users &

over 40,000 importers

38 stakeholder organizations including 29 Partner Government

Agencies (PGAs).

18 Modules & Key Functionalities implemented

Manifest Module

Risk Management

System

Data Validation &

Archive

Desktop Client

Authorization &

AuthenticationTranswork Hub

Trading Partner

Registration

Kenya ESWS System

ePayment Facility

Declaration Module

SW Modules

Crimson Trade Facilitation Suite

KRA

KPA

Inte

rfa

ce

La

ye

r

SIMBA

Standard XML

or EDI

Trading

Community

Banks

OGAs (TBK, HCDA,

KEBS etc)

KE

SW

S P

ort

al

Common Layer

Master &

Consignment Permits

Permit Management

& ApprovalsUCR Management Administration

OGA Permits & License Management

Security & Access Control

WorkflowsData & Management

Information System

Customer

Management SystemMessaging Hub Network Billing System

KWATOS

Standard XML

or EDI

WeighBridge

System

Standard XML

or EDI

ePayment

Gateway

Standard XML

or EDI

System Admin

Notification & Alerts

Reporting Audit Trail

Launch of the Kenya TradeNet System – May 2, 2014

Early Wins

Faster processing of Permits by Government Agencies.

Increased visibility and transparency for Traders.

Enhanced compliance by the Trade Community

Paperless (electronic) application for permits by traders 24/7 basis.

Paperless (electronic) processing and approval of permits by the

PGAs.

Electronic confirmation of Payments and provision of multiple

payments instruments via the KRA payment gateway.

Integrated Risk Management System available for use by the Partner

Government Agencies.

Stakeholders’ Feedback

1. The number of steps in processing applications has

reduced by almost 50%.

2. The average number of documents required for

processing applications has reduced by 30 – 50%.

3. The time taken to process clients requests has reduced

by over 50% in some instances e.g. the Dairy Board.

4. The number of times a client needs to visit a

Government Agency for a single application has been

reduced to zero in a number of instances.

5. Cost savings due to reduced paper work & movement.

CIO100 Awards 2014:

Best Public Sector ICT Project

Preliminary Thoughts

Single Window

A Single Window implementation is a streamlined data

exchange environment that makes use of ICTs.

Single Windows are among the most complex public sector

reform and modernization initiatives.

Single Window Systems often handle documentation on the

critical path of the cargo clearance process

A successful Single Window implementation is one that

consistently meets set objectives

Persistent operation of single windows key for success

Resilience

“Resilience is the ability of a system to absorb disturbances and

still retain its basic function and structure” (Walker and Salt,

2006)

Resilience key to persistent operation of Single Window

systems.

Resilience critical for successful Single Window System

implementations.

Multiple factors contribute to a resilient Single Window

implementation.

Single Window Resilience Aspects

1. Governance Aspects

Governance is key in ensuring both the strategic and operational

success of Single Window Implementations.

A suitable and adequately staffed agency is necessary for operations

of a Single Window system

Human Resource Management important in attracting and retaining

high quality staff

KenTrade is the Government of Kenya owned Kenya Single Window

System operator agency. The Agency’s Board of Directors provides

strategic direction and oversight while the staff handle operations.

Efforts to enhance KenTrade’s organization structure for improved

efficiency post go live of the Kenya Single Window system ongoing.

KenTrade got ISO certified in 2016

2. Business Continuity

Arrangements

Systems withstand adverse changes in their environments when

proper plans for Business Continuity are implemented.

A Disaster Recovery and Business Continuity Plan (DRBCP) is

critical for this purpose.

The DRBCP should be developed by a cross-functional team,

consider all aspects of operations and be driven by business

requirements.

A key aspect of Business Continuity Planning is redundancy (of

components, parts, Hosting sites etc).

KenTrade is continuously acquiring capabilities for Business

Continuity.

3. Government Support

Critical due to the complexity and high cost of implementing and

operating Single Window Systems.

Government support important during and after implementation of

Single Window Projects.

A clear and unambiguous mandate from government backed by

genuine political will is crucial.

KenTrade has been granted a clear mandate by the Government of

Kenya to operate the Kenya Single Window System.

Government of Kenya Support has been instrumental for

resourcing the Agency and in breaking resistance to change.

Change Management issues persist post implementation of Single

Window systems hence need for continued government support.

4. Legal Aspects

A legal framework (LF) needs to be developed and implemented.

LF is the set of measures to address legal issues related to national and cross-

border exchange of trade data required for Single Window operations

(UN/CEFACT, 2009)

Legal aspects to be addresses by the LF include;

i. Legal basis for electronic transactions

ii. Legal Mandates of agencies that intervene in cargo clearance

iii. Conditions for accepting and processing electronic transactions

Implementation of the LF should lead to a more streamlined legal and regulatory

environment to facilitate operations of the Single Window

KenTrade is spearheading efforts to streamline the Legal and regulatory aspects of

cargo clearance documentation in Kenya.

KenTrade has developed a draft Single Window Bill in the quest for requisite legal

provisions for Operations of the Kenya Single Window System.

5. Financial Sustainability

Operating a Single Window System is costly.

Funding required to enable implementation of enhancements to the

Single Window system and to adequately cover operating costs.

A business model often needs to be developed and implemented to

generate the required revenue.

The Government of Kenya is currently funding KenTrade’s operations

& use of the Kenya Single Window System is free of charge.

KenTrade finalizing development of its business model to continually

reduce dependence on Government of Kenya funding.

6. Single Window System

Architecture

The Functional and Technical architecture of the Single Window

System should factor in resilience.

As much as possible, international best practice and open standards

should be applied in the system architecture.

Important architecture aspects include;i. Application Architecture

ii. Security architecture,

iii. Data architecture,

iv. Message standards,

v. Technology Platform

vi. Performance monitoring model

Kenya TradeNet System built using open messaging standards &

international best practice.

7. Stakeholder Engagement

Continuous Stakeholder engagement is necessary to maintain

stakeholder goodwill and support as the Single Window System

evolves.

Continuous Stakeholder engagement ensures that evolving user

needs are understood by the single window operator entity.

Key mechanisms in engaging with stakeholders include;

i. Service Level Agreements (SLAs)

ii. Change Management Plan

iii. Communication Plan

iv. Contact Centre

KenTrade uses the 4 mechanisms above for stakeholder engagement.

8. System Maintenance &

Support Arrangements

Preventive Maintenance (PM) important in forestalling system

challenges.

There are instances of system failure even with diligent PM.

Competent and timely support crucial to minimize system

downtime and degraded performance.

KenTrade carries out preventive maintenance for the Kenya

TradeNet System as per a PM schedule.

Support for the Kenya TradeNet system handled by;

i. KenTrade ICT Team

ii. Single Window System vendor

iii. Hardware & supporting software manufacturers’ Partners

iv. Hardware & supporting software manufacturers

9. Supplier Management

Operations of Single Window systems are significantly affected by the

quality of service of various service providers.

Selection of high quality suppliers is crucial.

It is important to take care of the following key aspects in contracts with

suppliers;

i. Clear definition of expected service levels

ii. Monitoring Mechanism including service review meetings

iii. Compensation for failure to meet minimum service levels

iv. Termination

Suppliers should be treated professionally to attract good service providers

KenTrade ensures contracts are executed for services. Additionally SLAs are

agreed with suppliers for some services.