(Nairobi) – Frequent disruptions of Kenya Revenue Authority’s (KRA) Integrated Customs Management System (iCMS) have raised concerns among traders, who report rising costs and delays in cargo clearance.
Kenyan importers and exporters are voicing frustration over repeated downtimes on KRA’s customs system, which they say is causing costly delays in cargo processing and reducing government revenue collection. The iCMS, essential for clearing goods at Kenya’s main entry points, has faced back-to-back interruptions in recent months, adding strain to the country’s trade infrastructure.
Traders report that last week, the iCMS was down for nearly four days, while similar interruptions were experienced earlier this year in February. According to an internal KRA communication, this Tuesday also saw disruptions to KRA’s payment platform, further impacting cargo clearance activities. KRA apologized to stakeholders, acknowledging that its technical teams were actively working to resolve the issues. The notice stated, “Our online payment platform is unavailable due to a technical challenge. We apologize for the inconvenience and request your patience as we work to restore normal operations.”
The system downtimes are affecting major points of entry, including Jomo Kenyatta International Airport (JKIA), Mombasa Port, Inland Container Depots, and Container Freight Stations (CFSs). A customs official at JKIA explained, “You start a clearing process, and then it hangs. This situation interrupts the smooth clearing of cargo and prevents the collection of duties during downtimes.”
The iCMS was initially introduced by KRA’s Customs and Border Control Department in 2019 as a replacement for the older Simba system, aiming to reduce tax evasion and improve efficiency in customs procedures. Costing approximately $8.45 million (Sh1.1 billion), iCMS requires importers to submit various documentation through the system, including Import Declaration Forms (IDFs), cargo declarations, and exemptions, as part of the cargo clearing process.
However, clearing and forwarding agents have voiced repeated concerns about technical issues in iCMS, which they say lead to disruptions and financial losses. Nobert Omondi, a clearing agent at the Nairobi Inland Container Depot, explained, “When the system is down, we are unable to do anything. This causes delays all along the supply chain, from the point of entry to final delivery.”
KRA has acknowledged these issues, often notifying clearing agents when problems arise. During the latest downtime, KRA cited challenges with mapping declarations and IDFs between iCMS, KenTrade Trade Facilitation Platform, and Kenya Ports Authority’s KWATOS system. KWATOS, an automated system for managing container and breakbulk terminals, supports container tracking, planning, and controlling operations, making it vital for efficient cargo management.
The Shippers Council of Eastern Africa (SCEA) has called for increased resources for KRA to strengthen systems continuity and avoid further revenue losses. SCEA Chief Executive Agayo Ogambi stressed the importance of automation, noting that tools like iSCAN have reduced the need for physical verification at the Nairobi Inland Container Depot to below 12%. This shift has cut the average cargo dwell time to 3.5 days, improving efficiency at ports. However, Ogambi cautioned that ongoing iCMS challenges could negatively impact these gains, affecting both import and export timelines, which may lead to higher costs for shippers and reduced shelf life for time-sensitive products.
Shippers are also facing increased storage fees when their cargo is delayed due to system outages, with costs averaging $30 (Sh3,877) for a 20-foot container and $60 (Sh7,755) for a 40-foot container. The government, too, incurs losses during these downtimes, as duties on cargo remain uncollected.