KRA to Upgrade to New System

Kenya Revenue Authority (KRA) in collaboration with Trademark East Africa are in the process of working towards replacing the old Simba system to an upgraded system which will cost Sh.1 billion.

The new system will be due early 2016, this is according to the CEO of TMEA Mr.Frank Matsaert. Simba is said to have many operational shortcomings thus making it unreliable.

Previously, President Kenyatta had announced that the approval of the WTO Trade Facilitation Agreement (TFA) which had asked countries to upgrade their customs systems.

Trademark East Africa signed a memorandum of understanding with the World Customs Organization (WCO) who pledged to help increase technical assistance that will speed up the movement of goods, bringing together agencies into the ICT network including KRA and customers and security features.

An agreement required Kenya to publish all customs rules and procedures online, which have already been done and immediately it comes to force, then Consultations will have to be carried out in order for laws on moving goods to be amended.

Kenya is further required to have an electronic mode in place to be used in clearance of goods before they arrive into the country. This in turn will help goods such as air cargo to undergo customs faster even before custom duties and taxes are determined.

Developing countries will be the ones to benefit more from the implementation of the TFA will is in a position to increase global merchandise exports up to Sh.102 trillion in a year.

Kenya together with other countries that have joined to form the Northern Corridor like Rwanda, Burundi, Uganda and Democratic Republic of Congo (DRC) are already in the process of implementing the agreement. Through the agreement, they accepted to restructure customs control, documentation processes and transit.

Article by Vera Shawiza.