Trademark East Africa CEO Frank Matsaert. The firm has been working with the Kenya Revenue Authority to install a new customs system next year. PHOTO | FILE
Trademark East Africa (TMEA) is working with the taxman to instal a new customs software in the first quarter of 2016 at a cost of Sh1 billion to replace the Simba system currently in use.
Frank Matsaert, chief executive officer of TMEA which helps East African governments in formulating trade policies and infrastructure, said the firm has been coordinating with the Kenya Revenue Authority (KRA) on installation of the new system.
The World Trade Organisation (WTO) requires member states to upgrade their customs system following the ratification of the Trade Facilitation Agreement (TFA) in 2013.
“Simba is ageing and it has been facing operational difficulties, hence making it unreliable. We are working with KRA to replace it,” said Mr Matsaert at a news conference in Nairobi on Tuesday.
He was speaking during the signing of a five-year memorandum of understanding with the World Customs Organisation (WCO) on the sidelines of the ongoing WTO Ministerial Conference.
WCO has pledged to increase technical assistance in speeding up movement of goods in the East African Community by incorporating various agencies into the ICT network.
The Trade Facilitation Agreemen was passed at the ninth ministerial conference in Bali to streamline passage of goods across borders by removing trade barriers and establishing common approaches while clearing goods through customs.
British High Commissioner to Kenya Nic Hailey said on Tuesday that the TFA could bring $10 billion per year to sub-Saharan Africa, with majority of the gains coming into the East African Community.
Mr Hailey said the UK is providing over $250 million every year to support trade facilitation in developing countries, and that it recently announced $22 million to help implement the Bali agreement.
Kenya is among the 108 countries that have so far ratified the Bali agreement and has published all customs rules and procedures online.
WCO secretary-general Kunio Mikurinya lauded Kenya on the progress made so far on the single customs window.
The treaty also requires Kenya to provide an electronic means of clearing goods before they arrive in the country and allow goods, especially air cargo, past customs as fast as possible.
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