Development of the Kenya Electronic Single Window System

Presentation on: Implementation of National Single Window System - Kenyan Experience

Monday,December12,2011

SingleWindow ATradeFacilitationTool

SCOPE Nationwide24/7
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Background
2005:-Started as Port Based Community System

Spearheaded Port Authority( KPA) and Revenue Authority( KRA) Steering Committee -MD -KPA & KRA- CG
Why?

2007:-Kenya 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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KeyObjective
To facilitate international trade in Kenya by reducing delays and lowering cost associated with clearance of goods at the Kenyan borders, while maintaining the requisite controls and collection of duties and taxes, where applicable, on goods imported or exported.

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ObjectiveCargoDwellTime
Present SingleWindowObjective

10days 5days 2days

maximum 3days maximum 1day maximum 1hr

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StatementoftheProblem
Manystakeholdersinvolvedinthe cargoclearanceprocess. Stakeholdersexchangemany documentsamongthemselves. Stakeholderendsupsendingthesame documenttoeachothermanytimes. Exchangesareinhardcopyformand inmostcases,processingof informationiscarriedoutmanually. Result:
Delaysincargoclearance,hightradetransaction costs,corruption,andlossofcompetitivenessof Kenya
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Manualhandlingandprocessingoftrade documentation

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WorldBankDoingBusinessIndex
Country Singapore Mauritius Tunisia Rwanda Ghana Kenya Uganda Tanzania EaseofDoingBusiness TradingAcrossBorders 1 23 46 45 63 109 123 127 1 21 32 155 90 141 158 92

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ImportanceofTradeinEACEconomies
Country Burundi Kenya Rwanda Tanzania Uganda GDP(US$Mill) 708 15,998 1,913 10,754 6,954 ShareofTradein GDP(%) 40 57 36 47 39

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SavingstotheEconomy
Basedonthepresentvolumeofgoods imported/exported:
First3years US$150mandUS$250mperannum Thereafter US$300mtoUS$450mperannum Arisingfromimprovedservicese.g.

Reducedtradetransactioncosts Reduceddelays ReducedInefficiencies Reducedcorruption Reducedmanualdocuments/paperwork Reducedcostofcapital(JITConcept) Reduceddemurrage ImprovedspaceutilizationatportsIncreasedcapacityutilization

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BuildingBlocksMilestones
Key Milestones Project Charter Project Master Plan Business Process Re-engineering System Requirements Specifications Project Stakeholders Needs Assessment survey Set up of Operator Entity/SPV
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StakeholderCapacityBuilding
Capacity building for stakeholders Assisted the Agencies to establish CBS Streamline their Business Processes Develop SRS for their Community Based Systems
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GoingForward

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GoingForward
Sensitization of the Single Window Concept in all East Africa Community (EAC) Partner States Set-up of Technical Working Group to Spearhead initiative in EAC Partner States Advocate establishment of National Electronic Single Window Systems in EAC Partner States Advocate creation of a Regional Platform for EAC partners States to integrate the Single Window Systems
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LessonsLearnt
Good will from the Government/Strong Government support A strong sponsor/person to drive the implementation process Need for a dedicated Project Implementation Team Importance of co-operation of multiple Government Agencies involved
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LessonsLearnt
Continuous sensitization and change management to ensure stakeholders buy in Business Process Rationalization is very critical Importance of Regional Cooperation Adequate Budget Quick Wins
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Challenges
Capacity building & Training Multiple Stakeholders Enabling Legal Environment Change Management
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End
THANK YOU

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