KRA Cuts Cargo Clearance Time By 54pc, Boosting Trade and Revenue

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MOMBASA, Kenya – The Kenya Revenue Authority (KRA) has achieved a significant 54% reduction in the time taken to release goods from key entry points, including the Port of Mombasa and Inland Container Depots, enhancing trade efficiency and customs revenue collection.

In the last three years, the average clearance time has dropped from 112.6 hours (4.6 days) in the 2021-2022 fiscal year to 51.43 hours (2.1 days) in 2023-2024.

This improvement is attributed to increased adoption of pre-arrival cargo processing, a system that expedites cargo clearance by allowing customs officials to process shipments before they arrive at ports.

The uptake of this system rose from 25.28% in 2021-2022 to 40.55% in the current financial year.

KRA’s Customs Integrated Customs Management System (iCMS) plays a crucial role in this transformation, enabling traders to declare customs entries using the bill of lading, thus allowing for risk-based pre-arrival clearance.

This systematic approach has reduced bottlenecks, facilitating smoother operations at Kenya’s major ports.

To strengthen compliance, all goods arriving at the Port of Mombasa are now inspected at the port of origin, ensuring that they meet regulatory standards before shipping.

The Pre-Export Certificate of Conformity, issued by inspectors appointed by the Kenya Bureau of Standards, is mandatory for clearance, further streamlining the process.

The KRA’s integration with KenTrade’s trade facilitation platform has been instrumental in enhancing efficiency.

The seamless exchange of crucial documents, such as import declarations and licenses, between partner government agencies has reduced the need for in-person visits by importers and customs agents, promoting a more efficient clearance process.

Thanks to these measures, KRA recorded a 4.9% increase in customs revenue, collecting KSh791.37 billion in the 2023-2024 financial year, compared to the previous period.

Of this, oil taxes grew by 10.3% to KSh300.77 billion, while non-oil taxes contributed KSh490.6 billion.

Despite the rise in imports, customs revenues were somewhat affected by a 23.8% increase in exemptions and remissions, particularly for food commodities, which were granted to mitigate the impact of drought and high living costs.
Anthony Kinyua
Anthony Kinyua
Anthony Kinyua brings a unique blend of analytical and creative skills to his role as a storyteller. He is known for his attention to detail, mastery of storytelling techniques, and dedication to high-quality content.

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