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SimplifyingTrade Processes For Kenya Competitiveness
Kenya National Electronic SingleWindow 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
KenyaTradeNet 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
SingleWindow System
TradeNet System Stakeholders
TradeNetSystem
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 PortsAuthority
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 ofVeterinary Services
9. AFA Sugar Directorate
10. Kenya Dairy Board
11. Radiation Protection Board
12. Pest Control Produce Board
13. Directorate of Mining
TradeNet Stakeholders (41)
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 andAnti-CorruptionAuthority
23. National Environment Management Authority
24. Kenya MaritimeAuthority
25. Office of Intermodal Freight Management of the DR Congo
(OGEFREM)
26. Kenya Medical LaboratoryTechnicians andTechnologists Board
TradeNet Stakeholders (41)
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
KenyaTradeNet System Summary
 KenyaTradeNet 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 RevenueAuthority systems
14. Integration with Kenya PortsAuthority Systems
15. Integration with KEPHIS System
16. Integration with HCDA
17. Dynamic Risk Management
18. Security Bonds
19. Duty Remissions
20. Declaration DataTransmission
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 throughTradeNet, and therefore further speeding
up processing.
Achievements cont…
IFC/WB Assessment Report by IFC Consultants 24 – 28 October 2016
TradeNet System Assessment
To quote some of the conclusion verbatim:
“By any measure the implementation of the Kenyan
Electronic SingleWindow 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”
IFC/WB Assessment Report by IFC Consultants 24 – 28 October 2016
“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…
IFC/WB Assessment Report by IFC Consultants 24 – 28 October 2016
Time saved after Single Window
CDC Consulting Group Study commissioned by KENTRADE – July 2016
Average Cost Savings per System User
CDC Consulting Group Study commissioned by KENTRADE – July 2016
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/-
CDC Consulting Group Study commissioned by KENTRADE – July 2016
Challenges Mitigation
1. Lack of understanding among the
stakeholders of the value of the project
Change 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
GovernmentAgencies
Escalation 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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Challenges on single windows implementation - KENTRADE - Kenya

  • 1. SimplifyingTrade Processes For Kenya Competitiveness Kenya National Electronic SingleWindow System “Challenges on Single Window implementation” 15th March 2017
  • 2. 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
  • 3. KenyaTradeNet 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
  • 4. 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 SingleWindow System
  • 5. TradeNet System Stakeholders TradeNetSystem Security Agencies/ Non- Permit issuing PGAs Traders Freight Forwarders Shipping Line Banks Airlines/ GHA Consolidators Information exchange and hub
  • 6. TradeNet Stakeholders (41) 1. Kenya Revenue Authority 2. Kenya PortsAuthority 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 ofVeterinary Services 9. AFA Sugar Directorate 10. Kenya Dairy Board 11. Radiation Protection Board 12. Pest Control Produce Board 13. Directorate of Mining
  • 7. TradeNet Stakeholders (41) 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 andAnti-CorruptionAuthority 23. National Environment Management Authority 24. Kenya MaritimeAuthority 25. Office of Intermodal Freight Management of the DR Congo (OGEFREM) 26. Kenya Medical LaboratoryTechnicians andTechnologists Board
  • 8. TradeNet Stakeholders (41) 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
  • 9. KenyaTradeNet System Summary  KenyaTradeNet 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).
  • 10. 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
  • 11. 9. Marine Cargo Insurance 10. Cargo Release 11. Reports 12. User Admin 13. Integration with Kenya RevenueAuthority systems 14. Integration with Kenya PortsAuthority Systems 15. Integration with KEPHIS System 16. Integration with HCDA 17. Dynamic Risk Management 18. Security Bonds 19. Duty Remissions 20. Declaration DataTransmission 20 Modules Implemented
  • 12. • 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
  • 13. • 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 throughTradeNet, and therefore further speeding up processing. Achievements cont… IFC/WB Assessment Report by IFC Consultants 24 – 28 October 2016
  • 14. TradeNet System Assessment To quote some of the conclusion verbatim: “By any measure the implementation of the Kenyan Electronic SingleWindow 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” IFC/WB Assessment Report by IFC Consultants 24 – 28 October 2016
  • 15. “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… IFC/WB Assessment Report by IFC Consultants 24 – 28 October 2016
  • 16. Time saved after Single Window CDC Consulting Group Study commissioned by KENTRADE – July 2016
  • 17. Average Cost Savings per System User CDC Consulting Group Study commissioned by KENTRADE – July 2016
  • 18. 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/- CDC Consulting Group Study commissioned by KENTRADE – July 2016
  • 19. Challenges Mitigation 1. Lack of understanding among the stakeholders of the value of the project Change 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
  • 20. Challenges Mitigation 1. Inadequate legal framework. KENTRADE is working on a Bill to repeal conflicting Laws 2. Conflicting mandates by some GovernmentAgencies Escalation 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
  • 21. 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.