challenges on single windows implementation - kentrade - kenya

Simplifying Trade Processes For Kenya Competitiveness

Kenya National Electronic Single Window System

“Challenges on Single Window implementation”

15th March 2017

KENTRADE:

A State Corporation

established in January 2010

Principal Objectives:

To Facilitate International

Trade

To implement,

operationalize and manage

the Kenya Electronic Single

Window System.

Parent Ministry:

National Treasury

Kenya TradeNet System Portal

Portal

www.kentrade-portal.com

OGAs Trade Community

• A single entry point for all

Import and Export

applications

• Regulations and

requirements

• Integrate OGAs

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

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

KEBS

Single Window System

TradeNet System Stakeholders

TradeNet System

Security Agencies/ Non-

Permit issuing PGAs

Traders

Freight Forwarders

Shipping Line

Banks

Airlines/ GHA

Consolidators

Information

exchange and hub

TradeNet Stakeholders (41)

1. Kenya Revenue Authority

2. Kenya Ports Authority

3. Kenya Bureau of Standards

4. Kenya Plant Health Inspectorate Service

5. Pharmacy & Poisons Board

6. Port Health

7. AFA Horticultural Crop Directorate

8. Directorate of Veterinary Services

9. AFA Sugar Directorate

10. Kenya Dairy Board

11. Radiation Protection Board

12. Pest Control Produce Board

13. Directorate of Mining


14. Kenya Wildlife Services

15. National Biosafety Authority

16. AFFA Tea Directorate

17. Central Firearms Bureau

18. Nursing Council of Kenya

19. Anti-Counterfeit Agency

20. Kenya National Police Service

21. Kenya National Chamber of Commerce & Industry

22. Ethics and Anti-Corruption Authority

23. National Environment Management Authority

24. Kenya Maritime Authority

25. Office of Intermodal Freight Management of the DR Congo

(OGEFREM)

26. Kenya Medical Laboratory Technicians and Technologists Board


27. The National Treasury

28. Kenya Bankers Association

29. Kenya Association of Manufacturers

30. Kenya International Freight & Warehousing Association

31. Shippers Council of East Africa (SCEA)

32. Association of Kenya Insurers (AKI)

33. Kenya Ship Agents Association (KSAA)

NEW PGAS

34. AFFA Fibre Crops Directorate

35. AFFA Food Crops Directorate

36. AFFA Pyrethrum Board

37. AFFA Nuts and Oils Directorate

38. Department of Fisheries

39. National Quality Control Laboratory

40. Energy Regulatory Commission

41. Kenya Forest Services

Kenya TradeNet System Summary

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 7,500 registered system users &

over 60,000 importers

41 stakeholder organizations including 30 Partner Government

Agencies (PGAs).

Module/ Functionality

1. Unique Consignment Reference (UCR)

2 Impending Arrival Report (IAR)

3 Bay Plan (BAPLIE) submission

4 Manifest Sea

5 Manifest Air

6 Permits

7 Import Declaration Form (IDF)

8 Payments

20 Key Functionalities/Modules

Implemented

9. Marine Cargo Insurance

10. Cargo Release

11. Reports

12. User Admin

13. Integration with Kenya Revenue Authority systems

14. Integration with Kenya Ports Authority Systems

15. Integration with KEPHIS System

16. Integration with HCDA

17. Dynamic Risk Management

18. Security Bonds

19. Duty Remissions

20. Declaration Data Transmission

20 Modules Implemented

• Average number of processes/steps in processing clients

applications has reduced by almost 50%.

• Average number of documents required for processing

applications has reduced by about 30 – 50%.

• Electronic approval of permit - approval from any location

resulting to time reductions

• Electronic means of payment - contributed to faster processing

& issuance of permits;

• Removal of need to physically visit the PGA’s resulting to time

and cost savings for both government officers and private

sector employees.

• PGA’s noting less crowding at offices for applications resulting

to orderly and manageable operations;

Achievements

IFC/WB Assessment Report by IFC Consultants 24 – 28 October 2016

• Reduction in use of paper and resulting cost savings;

• Responsiveness of KENTRADE to address support calls

and, for the private sector having a single point of

contact for any type of problem is of great benefit;

• Removal of potential to falsify documents, PGA noting

improved security and no need to question permits

issued through TradeNet, and therefore further speeding

up processing.

Achievements cont…


TradeNet System Assessment

To quote some of the conclusion verbatim:

“By any measure the implementation of the Kenyan

Electronic Single Window must be deemed successful.

The project has not only implemented a regulatory

single window which meets nearly all criteria as defined

under UN/CEFACT’s Recommendation No. 33 and 35

for a single window, but it has done so with a satisfied

client base”


“A single window solution is truly not just an IT solution but

an organizational challenge, with a fundamental need to put

in place a multi-faceted service organization that is

authorized and enabled to meet the needs of all its client,

public and private alike. Kenya has met this challenge and

KENTRADE is a model for other countries embarking on

the path of a single window”

TradeNet System Assessment Cont…


Time saved after Single Window

CDC Consulting Group Study commissioned by KENTRADE – July 2016

Average Cost Savings per System User


Average Explicit Cost Savings

Type of service

Average cost

incurred

before KTNS

Average cost

incurred after

KTNS

Mean cost

savings

Demurrage

charges (KES) 168,636/- 119,864/- 48,773/-

Warehousing

charges (KES) 760,167/- 726.083/- 34,083/-

Stationary (KES) 37,957/- 18,732/- 19,225/-

Payment to the

messenger 39,539/- 14,492/- 26,049/-

Payment to the

clerk (KES) 17,500/- 8,250/- 9,250/-

Printing (KES) 40,526/- 13,998/- 26,529/-

Photocopying

(KES) 33,438/- 10,422/- 23,016/-


Challenges Mitigation

1. Lack of understanding among the

stakeholders of the value of the projectChange Management

2. Implementation budgetary Constraints Close Government and Development

Partner Involvement

3. Silo mentality - disjointed supply chain

activities among different Government

Agencies

Change Management

4. Complicated procedures and

document requirements with a vast

majority insisting on status quo.

Business Process Re-engineering

5. Changes in scope resulting to costly

Change Requests.• Thorough RequirementsValidations

• Involvement of SME Consultant

Implementation Challenges

Challenges Mitigation

1. Inadequate legal framework. KENTRADE is working on a Bill to

repeal conflicting Laws

2. Conflicting mandates by some

GovernmentAgenciesEscalation of conflicting mandates to

respective Ministries for remedial

actions.

3. Recurrent budgetary Constraints Introduction of a self-sustaining

business model

4. Poor ICT skills and infrastructure to

assure acceptable system availability.

Implementation of redundant

infrastructure and secondary sites

5. ICT Security issues (Due to centralized

information sharing and electronic

documents).

Implementation information security

best practices

6. Slow resolution of issues - limited

workarounds in automated environment

Signing of Service Level Agreements

(SLA) amongst PGA.

Operational Challenges

Institutional Improvements

1. Enactment of the KenTrade bill

2. Introduction of a self-sustaining business model

3. Improvement of the computing infrastructure

and putting in place a Business Continuity Plan.

4. Continued capacity building of the KENTRADE

staff in terms of IT, trade facilitation reforms

and single window development.

challenges on single windows implementation - kentrade - kenya

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