In the last couple of years, there has been exponential growth in International trade globally.
Customs administrations are key players in international trade as frontline agencies in the clearance of goods, people and means of conveyance across borders.
This growth has meant an increased workload for Customs as officials have to clear a large number of consignments as well as passengers.
To enhance operational efficiency, Customs administrations have employed technology by automating most of their processes including the processing of declarations, risk management, revenue assessment and collection, post clearance audit among others.
Kenya Revenue Authority’s (KRA) Customs and Border Control has not been left behind, transitioning from what used to be very long endless truck queues, extending as far as 25km at border points, a surge in smuggling, slow clearance taking as long as a week or two, to efficient clearance services with malpractices being detected instantly.
The efficiency is made possible by the technological changes with KRA having 33 serviceable scanners, across the country.
Initially, Customs officers perused cargo manually, now the 33 scanners are interlinked to the Integrated Scanners Command Centres at Times Towers, JKUAT Towers and Mombasa Command Centre enhancing transparency in the entire process.
This is achieved through real-time monitoring, faster clearance of cargo facilitated by the use of non-intrusive inspection and provision of intelligence to facilitate targeted inspection.
The technological investments have borne fruits, with revenue compliance from 86 percent in June 2018 to 98.6 percent as of January 2023.
Scanners have sealed revenue loopholes enabling the KRA to surpass most of its revenue targets over the last several years.
Further, the improved efficiency in Customs processes has reduced the time and cost of compliance for traders and contributed to the overall ease of doing business in Kenya and positioning Kenya as a key investment destination while at the same time creating a level playing field for businesses.
Some of the technological systems enhancing Customs revenue include the Integrated Customs Management Systems (iCMS) platform, which automates all core mandates as a one-stop system for Customs processes.
The platform handles processes such as Customs declarations, revenue assessment and payment, intelligence-based risk management as well as post-clearance audit.
All the functions supporting cargo clearance are domiciled within iCMS.
These include processing of refunds, submission of cargo manifests (both air and sea), management of Security Bonds, and processing of exemptions among others.
The iCMS system is also integrated with other partner government agencies through the KENTRADE single window system and the Single Customs Territory System.
The KRA will continue to invest in modern technology in the area of Customs management in line with the overall objective to align itself with universal industry best practices in facilitating a fair and secure trade environment promoting trade within the region.
Since the commissioning of the system, there has been a significant improvement in transit time from 11 days to 4 days and a drastic reduction in dumping cases which result in major losses in duty and tax.
Traders have also benefited immensely from this system since it facilitates real-time responses from the Customs Department and other authorities in the event of attempted highway theft and even in the event of accidents.
Such prompt action has helped in securing goods in transit while also helping save lives, while enhancing KRA's capacity to assure revenue collection and enforce regulations that have significant positive impact on the country's economic development.
