The days of relying solely on Kenya Revenue Authority (KRA) for electronic cargo tracking seals are coming to an end, with 15 private suppliers approved to provide the devices as part of a new system expected to give shippers more choice and ease delays.
The tax authority has introduced a Multi-Vendor User-Owned Framework under the Regional Electronic Cargo Tracking System (RECTS), allowing businesses to obtain tracking devices directly from approved service providers.
The Shippers Council of Eastern Africa has welcomed the change, saying opening the market to several suppliers could improve the availability and performance of the electronic seals.
Chief Executive Agayo Ogambi said the new arrangement comes at a time when the amount of transit cargo passing through the port continues to increase.
He said transit cargo now accounts for more than 30 per cent of the port's throughput, making it necessary to have a tracking system that can meet demand without causing unnecessary delays.
"... the many vendors will possibly enhance competitiveness, reliability and efficiency" Mr Ogambi said.
Ogambi said the change was overdue, pointing to shortages of electronic seals as one of the factors that had caused delays in the movement of cargo and slowed down truck turnaround times.
KRA announced the transition in a public notice issued on Friday, September 11, saying its electronic seals will be phased out in stages. The process is expected to be completed by October 26.
Once the transition period ends, goods being moved under customs control will have to be monitored using electronic tracking devices obtained from the approved private suppliers.
Unlike the previous arrangement, businesses will have the freedom to decide which provider they want to use. They will then deal directly with their chosen supplier and agree on the commercial terms.
KRA said the new approach is meant to make tracking devices easier to obtain while giving the system greater ability to respond to the changing needs of businesses.
The authority also said the arrangement would strengthen the monitoring of cargo that remains under customs control as it moves through the supply chain.
"To enhance service delivery under the RECTS and in response to evolving business dynamics and increasing demands, KRA has transitioned to a Multi-Vendor, User-Owned Seals model for both dry cargo (e-seals) and wet cargo (e-fuel) electronic seals," the authority said.
The new framework will therefore cover electronic seals used for dry cargo as well as those used to monitor wet cargo, including e-fuel shipments.
Transporters and cargo operators have for some time raised concerns over delays caused by a lack of KRA-owned electronic seals.
The new system is expected to give cargo operators alternative sources for the devices and reduce the disruptions that have previously affected the movement of goods and the time trucks spend completing their journeys.