Kenya Revenue Authority launches electronic cargo tracking system to tame evasion and leakages
Kenya’s taxman, the Kenya Revenue Authority has unveiled an electronic cargo tracking system as it seeks to seal tax leakages and tame diversion of goods on transit.
The Regional Electronic Cargo Tracking System is part of the taxman’s plans to digitize its customs operations, connecting with Uganda and Rwanda in the new system aimed at streamlining operations along the Northern Corridor.
The system replaces the Electronic Cargo Tracking System where monitoring was done independently by each country through stand-alone platforms.
The RECTS now allows centralised monitoring of trucks from the port of entry (Mombasa) to Kampala, Kigali and other destinations in the three countries.
“By having customs administrations in three countries tracking the same cargo on virtually the same platform, the opportunities for collusion between importers and staff will be substantially diminished,” KRA commissioner general John Njiraini said.
“The sum total of these developments is to make cross-border EAC trade smoother besides minimizing opportunities for tax evasion.”
The system comes three years after a July 3, 2014, Heads of States Summit in Kigali, which directed the three members states to adopt e-monitoring for seamless flow of goods. Uganda launched its system last Friday.
It involves fitting of an e-seal with a 60-day power capacity, monitored under the GPRS platform.
“A Geo-fence of the route has been set up. We have five check points, and a rapid response unit of 200 police officers is in place. Any violation is immediately detected,” customs and border control commissioner Julius Musyoki said.
He said challenges such as revenue leakages, unfair business competition and increased costs of doing business led to the review of the ECTS.
The system is expected to reduce transit time for trucks between Mombasa and Kampala to three days, from 4.8 days. This will happen due to reduced transit time at border points.
The bond cancellation and refund process will also be easy, Njiraini said. Transit cargo constitutes 40 per cent of imports that land at the Port of Mombasa.
The KRA also plans to phase out the 11-year old online clearing platform – Simba system – by May 1, to be replaced by the new Integrated Customs Management System, to help curb tax evasion. An integrated cargo scanning system is also expected to be in place by November.
