Markets & Finance

KRA clearance system hitch hits port

KRA-HQ

Tax payers queue outside the Kenya Revenue Authority headquarters to file their tax returns. The Simba System, KRA’s online clearance solution, has been hit by a technical hitch, which in turn has resulted in bottlenecks at the Mombasa port. Photo/FILE

A technical hitch in Kenya Revenue Authority’s online clearance system has affected customs services, threatening to cause a fresh build-up of cargo at the port of Mombasa.

Traders at the port of Mombasa have reported business disruptions since Wednesday following hitches on the Simba system — the electronic platform that the taxman launched five years ago to expedite clearance and check graft abetted by use of manual systems.

KRA Thursday confirmed the disruptions on its online clearance services and pointed out efforts were under way to fix the problem.

“Kenya Revenue Authority sincerely apologises to tax payers who have been unable to access our services, following system downtime experienced from Wednesday,” head of communications, Kennedy Onyonyi, said.

“This has been occasioned by an exercise to enhance electric power supply at our centre through installation of a new power battery back up. As a result there has been an interruption of KRA online services especially adversely affecting users of the customs system.”

The customs system is KRA’s main customer facing module within the Simba system—underlining the magnitude of the effects caused by the downtime.

A build-up of cargo is already being experienced at the port following the crisis.

“Nothing is moving at the moment because the Simba System holds the backbone for all customs clearance procedures. Many cargo handlers are now forced to sit back and wait,” a cargo clearing and forwarding agent said.

Mr Onyonyi, however, said KRA was keen on restoring normalcy within the shortest time and urged cargo owners and handlers to be patient.

“The short term inconvenience not withstanding, we are committed to normalising operations within the shortest time possible,” he said.

“As customs operations take place on a 24-hour cycle, we plan to deploy additional officers in the next few days to ensure that the backlog generated is eliminated and applicable revenue collected expeditiously.”

KRA claimed that the system segment that handles motor vehicle transactions including registration, transfer of motor vehicle ownership, dealer licensing and processing of driver’s licences had been restored and normal operations resumed Thursday.

The latest hitch on the Simba System is likely to trigger anxiety among importers and exporters at a time when activity at the port of Mombasa is picking up on the sentiments of improved economic fortunes in the region.

The KRA plans to undertake a major overhaul to the Simba system that will see its capacity increased to more than 10,000 users to help cope with a sharp rise in transactions triggered by improving economies in the region.

“Transactions are huge on the improved economy and the agents want to tackle multiple jobs at a go but this is impacting negatively on the performance of the system” Ezekiel Saina, the senior deputy commissioner in-charge of information communication and technology at KRA told the Business Daily in a recent interview.

We will deny them such chances in the new overhauled system”

The port of Mombasa too witnessed increased activity following the climb in global trade in 2010.

Statistics released last week by KPA showed that container traffic through the port, that also serves several landlocked countries, grew by 12 per cent in 2010 on the back of a resurgent global economy.

Traffic through Mombasa port is watched as an indicator of activity in the region’s economies.

[email protected]