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Progress of the Kenya ElectronicSingle Window System Project
Presentation to AIR CARGO STAKEHOLDERS FORUM at JKIA on Friday,25th October 2013
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Presentation Outline
i. KENTRADE
ii. Background
iii. Project Objective
iv. System Implementation
v. Key Milestones
vi. Benefits
vii. Project progress
viii. Road Map
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KENTRADE A State Corporation established on 14th January 2010 vide
Legal Notice No 6 of 2011.
Principal Objectives:
To Facilitate Trade
To implement, operationalise and manage the KenyaNational Electronic Single Window System (KNESWS).
Parent Ministry:
Ministry of Finance
Contract signed between GOK and SingaporeCorporations Enterprise under a G to G agreement forAcquisition, Supply and Implementation of KNESWS.
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Problem StatementTrade procedures in Kenya have been inefficient, lengthy and slow resultingin high cost of trade transactions/doing business. The main reasons are asfollows:
Many stakeholders are involved in the cargo clearance process.
Stakeholders exchange many documents among themselves.
Stakeholder ends up sending the same document to each other many
times.
Exchanges are in hard copy form and in most cases, processing ofinformation is carried out manually.
Results;
Delays in cargo clearance,
Perennial congestion at the port, Underutilization of port facilities
Long truck queues at the border posts
Corruption
Loss of competitiveness for the country.
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Inefficient processes addressed by theKenya Electronic Single Window System
Chamber of Commerce
Warehouse
Carriers
KRA
KTB KPA PPBOther related
government agencies
Importer/Buyer
Exporter/Seller
Freight Forwarder/Shipping
Insurance
Company
Inspection Agents
KEBS
Many government regulatory agencies
Numerous lodgments
Many Duplicated data elements
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Cargo Dwell Time
GovernmentEnterprises
PresentSingle Window Objective
8 days maximum - 3 days
5 days
2 days
maximum - 1 day
maximum - 1 hr.
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Results of Inefficiencies
Tons of trade documents
Congestion at Borders & Port
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Problems of paper based trade
Government
Complex regulation Lack of transparency
Difficult monitoring Loss of Revenue(Corruption)
DecreaseNational Competitiveness
High transaction cost
Long lead time Incorrect processing
Enterprises
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Doing Business RankingDrop in Kenyas ranking Doing Business Index:
Doing Business 2013
RankDoing Business 2012 Rank Change in Rank
121 117 -4
Trading Across BordersDB 2013 Rank DB 2012 Rank
Change in Rank
148 142 -6
Source:http://www.doingbusiness.org/data/exploreeconomies/kenya/#
http://www.doingbusiness.org/data/exploreeconomies/kenya/http://www.doingbusiness.org/data/exploreeconomies/kenya/ -
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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 all
information required forclearance once to the
Single Window System
Responses from various
Authorities and Financial
Institutions are returned toTrader or Agent
Kenya Revenue
Authority
Kenya Ports
Authority
Other Control
Agencies
Banks
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National Payments Gateway
TRADER
NATIONAL SINGLE WINDOW
PAYMENT
GATEWAY
Transmit paymentrequest
Confirmation ofpayment
NATIONAL PAYMENT SYSTEM
KCB
CBA
NBK
COOP
HABIBSTANBIC
NPS
GATEWAY
CBK
Submits all informationrequired for clearance
once to singlewindow
Response from variousAuthorities and Financial
institutionsare returnedto trader/Agent
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Benefits- Savings to the Economy
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
Arising from improved services e.g. 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
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Benefits Cont
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Benefits Cont
Lodgment of documents from anywhereany time
Greater efficiency, accountability andreduced cost of doing business
Integration/Interface with the RegionalElectronic Single Window System
Greater coordination of GovernmentAgencies-KENTRADE
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Project Objective
Establish an electronic platform to integratestakeholder systems in cargo clearance process
Facilitate International trade in Kenya byreducing delays and lowering costs associatedwith clearance of goods at the Kenyan borders,while maintaining the requisite controls andcollection of levies, fees, duties and taxes,
where applicable, on imports or exports.
SWS is an Enabler project under the EconomicPillar of Vision 2030
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System Implementation
Cabinet approved a G2G agreement for theConsultancy,Acquisition, and Implementation of the National ElectronicSingle Window System from Singapore CooperationEnterprise (SCE) May 2012
KENTRADE as the implementing agency entered into acontract with SCE for the Supply and Implementation of theSystem which includes a 3 year maintenance period afteroperationalization - September 2012
Kick off meeting between KENTRADE and the vendor for theImplementation of the Single Window System was held onthe - October 2012
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Work Plan
Milestone Date
Signing of the Implementation contract withvendor
Completed
Kick off Meeting with vendor and stakeholders Completed
Business Process Re-engineering of stakeholderprocesses
Completed
System Design Completed
Software Development July 2013
Training of Trainers July 2013
User Acceptance Tests Aug 2013
Training of Stakeholders Sept/Oct 2013
System Pilot Oct 2013
System roll out 31st Oct 2013
Sensitization of Stakeholders Continuous
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ROAD MAPSystem Implementation Kick off - October 2012
System Go-live - 31st October 2013
Manifest Module -Sea & Air
Declaration Module-Sea & Air
License & Permit Module-Tea Board, HCDA and
Pharmacy & Poisons Board
E-Payment Facility Integration with SIMBA
Integration with KWATOS
Integration with KEBS
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ROAD MAP
Integration with Weighbridges
Integration with OGAs
Dynamic Risk Management
Road Manifest Module
Road Declaration Module for Land
Integration with the National Electronic
Payment System (NPS) Gateway
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Presentation on Proto-types
Prototype available atwww.kentrade.go.ke/prototype
OGA Portal To be used for pre-clearance (lodgement of applications forpermits and licences)
Tradenet Portal To be used forClearance.
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Payments Gateway Vision
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Payments Gateway Vision Cont
The payment gateway enables the full range ofpayment channels including credit card, debit card,mobile money, point of sales, internet payments andconfirmation of bank deposit payments;
The payment gateway enables foreign currencytransactions in all major global currencies.
The payment gateway enables a consolidated paymentto be attributed to several receiving agencies and / or
transactions. The payment gateway has a service-oriented interface
that enables easy integration with the payment systemof any participating agency.
The payment gateway is operational 24/7/365 with a99.99% SLA
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Thank you