Kenya Revenue Authority (KRA) has recorded a 54% reduction in the time taken to release goods from Port of Mombasa, Inland Container Depots and at Kenya Railways Corporation Sheds over the last three years.
According to data from KRA, the duration of time to release goods has dropped to an average of 51.43 hours from 112.6 hours in 2021/2022. This translates to a duration of slightly above 2 days compared to the previous duration of slightly above 4 days.
The taxman says increased adoption of Pre-Arrival Cargo Processing, saw its uptake grow from 25.28% in FY 2021/2022 to 40.55% in FY 2023/2024.
Enhanced systems capabilities of the Customs Integrated Customs Management System (iCMS) now allow for the declaration of customs entries using the bill of lading as the base document, enabling processing to commence even before the cargo arrives.
To further strengthen risk management, all goods arriving at the Port of Mombasa must now be inspected at the port of origin. This ensures compliance through the issuance of a Pre-Export Certificate of Conformity by licensed inspectors appointed by the Kenya Bureau of Standards (KEBS).
The KRA’s integration with KenTrade’s Trade Facilitation Platform has been instrumental in streamlining the customs clearance process.
Seamless sharing of critical information, such as import declarations and supporting documents, among Partner Government Agencies (PGAs) has facilitated the issuance of licenses and permits with reduced human interaction, eliminating the need for unnecessary office visits by importers and customs clearing agents.
This integration has significantly enhanced the efficiency of KRA’s service delivery.
The efficiency enhancing measures effected by KRA resulted in a 4.9 percent increase in customs revenue to KShs 791.368 Billion during the 2023/2024 financial year, compared to the same period in FY 2022/2023. KRA’s customs revenue collections comprised revenues from oil taxes which grew by 10.3 percent to stand at KShs 300.77 billion and non-oil taxes which stood at KES 490.6 Billion.
The Customs Department realized an 11.7 percent rise in import values being the value of goods specified in the schedule as ascertained from the original invoice and includes the charges paid or payable for insurance, excise duty, freight charges and all other charges incidentally levied on the purchase of such goods.
Despite the rise in overall import values, oil and non-oil taxes performance were in part affected by growth in exemption and remissions, which grew by 23.8%, driven by special exemptions accorded to some food commodities to mitigate against adverse effects of drought and reduce the cost of living.