AAEC MEETING - sOMONE 2015

1. 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

2. 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

3. 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

4. Background – Cont’d
A State Corporation established in January 2010 vide Legal
Notice No 6 of 2011.
Principal Objectives:
To Facilitate International TradeTo Facilitate International Trade
To implement, operationalize and manage the Kenya
Electronic Single Window System (Kenya Tradenet).
Parent Ministry:
National Treasury

5. 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 eachStakeholder 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.

6. 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
Tuesday, February 10, 2015 6
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

7. Inefficient processes addressed by the Kenya
Electronic Single Window System
KRA
PCPB KPA PPB
Other related
government agencies
NBA
KEBS
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

8. Results of Inefficiencies
Tons of trade documentsCongestion at Borders & Port
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.
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

9. 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 allTrader 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 Control
Agencies
Banks

10. 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.

11. Benefits to Government
1. 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

12. Benefits to Business
1. 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

13. Benefits to the Kenyan Economy
1. 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

14. Average Cargo Dwell Time
GovernmentEnterprises
Current Single Window Objective
7 days maximum - 3 days7 days maximum - 3 days
5 days
2 days
maximum - 1 day
maximum - 1 hr.

15. Project Stakeholders

16. 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

17. 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

18. 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

19. Project Status

20. 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.

21. Launch of the Kenya TradeNet System - May 2, 2014

22. 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

23. 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

24. 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

25. Key Achievements

26. 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 payments
instruments. 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 by
government agencies through the SWS Payment Gateway.
Integrated Risk Management System accessible by a number of the Partner
Government Agencies.
Full Integration with 3 major stakeholder systems (KRA, KPA, KEPHIS). Ongoing
integration work with other Agencies.
Real-time generation of reports
Compliance levels have gone up e.g. traders have to provide permits

27. Implementation Challenges, Success
Factors & Lessons learnedFactors & Lessons learned

28. Implementation challenges
1. 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.

29. 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.

30. 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.

31. RecognitionRecognition
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32. CIO100 Awards 2014: Best Public Sector ICT Project

33. Single Window Systems in the EAC RegionSingle Window Systems in the EAC Region
33

34. NSW
GW
NSW
Centralized Gateway ModelDistributed Gateway Model => ASW
Regional Single Window Models
NSW
NS
W
Regional Service
GW
GW GW
GW
GW
NSW
Central
GW
NS
W
NSWNSW
RSW

35. 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.

36. 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

37. Areas of CooperationAreas of Cooperation
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38. Areas of cooperation
Proposals for Funding
Area Description Estimated costs (USD)
Set up of Secondary site Setup of secondary site to
ensure high availability.
Cost to cover servers,
supporting software,
storage, and network
6,000,000
Tuesday, February 10, 2015 38
storage, and network
infrastructure.
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

39. 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

40. KENTRADE Contact Centre

41. Questions
Thank You