October 30, 2018 www.mygov.go.ke NEWSFOCUS | 13 How technology-based solutions can boost govt Big Four Agenda BY AHMED FARAH K enya must utilize technology-based solutions for it to realise its Big Four Agenda, namely: manufacturing, universal healthcare, affordable housing, and food security. One way of doing so is building partnerships and increasing collaboration with like-minded organisations in the public and private sector. With this regard, Kenya Revenue Authority (KRA) has partnered with TradeMark East Africa (TMEA) to implement several digital and physical infrastructure solutions to facilitate intra-regional trade and widen the tax base. This partnership has resulted in innovative programmes which have made the tax collection in Kenya efficient. Such interventions include the Regional Electronic Cargo Tracking System (RECTS), Integrated Customs Management System (which will replace the Simba System), One Stop Border Posts at Taveta, Malaba and Busia which have not only reduced the time taken to cross the border but have also sealed tax collection loop holes. Our Mombasa port programmes, which include berth upgrades, gate expansion and access road, have led to increased capacity and enhanced productivity leading to reduced cargo and ship dwell time. This has increased the competitiveness of Mombasa port thereby attracting more business. Recently, TMEA kickstarted a new project with the AntiCounterfeit Agency (ACA) to develop a digital platform that will improve the efficiency of tracing and seizing counterfeit goods. KRA approximates that manufactures lose at least US$42million annually to counterfeit goods while the government loses US$80million as potential tax revenue. The Integrated Customs Management System (iCMS) is also a worthy system by KRA, expected to be a game changer in the industry, especially in enhancing the capacity of collecting customs revenues. To enable a seamless flow of information and to ensure that revenue loopholes are sealed, iCMS will be integrated with the National Treasury system, Ministry of Foreign Affairs, National Transport and Safety Authority (NTSA), Regional Electronic Cargo Tracking System (RECTS), Regional Customs Transit Guarantee (RCTG), Single Customs Territory (SCT) systems, Kilindini Water-front Terminal Operating System (KWATOS), Kenya Since its official launch in March 2017, it has aided in spurring fair trade by creating a level playing field for both importers and local industries, reducing dumping and diversion of goods and improving security of goods on transit. Between January 2017 and September 2017, the revenue authorities used RECTs to curtail 23 attempted diversion incidents of goods whose value was estimated as US$1,475,407. At the same time, RECTs tracked 52% of total transits on the Northern Corridor valued at US$879m. Pundits identify two key $42m Amount manufactures lose annually to counterfeit goods, while the government loses US$80million as potential tax revenue, according to KRA National Electronic Single Window System (KNESWS) and the Kenya Pipeline Corporation system (KPC). This will ease exchange of data especially amongst government agencies and enhance collaborations across the agencies. TMEA was closely involved in the implementation of Regional Electronic Cargo Tracking System (RECTS), which is also touted as a game changer in the Northern Corridor, and with good reason. It is the first regional cargo tracking system jointly managed and Ruto commissions macadamia processing plant in Embu county Factory has employed 400 workers directly and other 600 indirectly BY KIMANI TIRUS KNA- EMBU D eputy President William Ruto on Thursday commissioned the first macadamia processing factory in Embu with capacity of 7,000 metric tonnes annually. During the commissioning, the proprietor and managing director of Privamnuts EPZ Kenya Ltd Patrick Mukundi, said his factory has employed 400 workers directly and other 600 indirectly. “The company has contracted over 30,000 farmers from Central, Rift Valley and Eastern region for supply of macadamia nuts,” said Mukundi. The MD added that in Kenya, there are over 2 million small scale farmers growing macadamia. The factory, which started in 2011 in Industrial area in Thika before relocating to Embu in 2m Small scale farmers growing macadamia in Kenya 2015, was buying macadamia nuts at Sh60 per kilogram in 2015. The prices have however shot up to Sh160 per kg this year. Mukundi noted that the main challenge the factory was experiencing is smuggling of raw nuts outside the country and poor post-harvest management of the nuts. “However, we are coordinating with the County Government to find solutions to problems facing macadamia,” added a former banker. Chief Executive Officer Nut Processors Association of Kenya (NutPAK) Charles Muigai applauded the Deputy President for banning exportation of raw macadamia nuts when he was Agriculture minister. “The ban, which brought to an end exportation of raw nuts, has seen emergence of local nut processing factories hence a source of direct and indirect employment,” Muigai pointed out. He said the upcoming factories would cushion farmers from losses after China, an importer of the nuts, started processing its own nuts from over 10 million macadamia trees it has been nurturing for the last 10 years. During the commissioning of the factory, the DP issued a stern warning against those smuggling raw macadamia nuts outside the country adding that local processing companies would ensure value addition to the nuts hence facilitating them to fetch higher prices. monitored by 3 Revenue Authorities in Africa. The system will be showcased at the KRA’s Taxpayer’s Day which is set for 31st of October. Implemented together with Uganda Revenue Authority and Rwanda Revenue Authority, RECTs has provided a seamless platform of tracking cargo along the Northern Corridor (from Mombasa to Kigali). Plans are underway to widen the system reach to South Sudan, Tanzania and ultimately to destinations outside the EAC bloc. challenges to trading in Africa. One of them is logistical costs and the other one is access to trade information. Initiative like RECTs responds to the first challenge by improving cargo predictability and truck turnaround times. Forums like KRA tax summit responds to the second challenge, by providing traders with information sharing platform where they learn how to leverage on existing and planned government initiatives. Strong partnerships are key in delivering a mix of physical and digital infrastructure initiatives for a vibrant African. Ahmed Farah is country director of TradeMark East Africa (TMEA)
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