1 KENYA TRADE NETWORK AGENCY (KENTRADE) Simplifying Trade Processes for Kenyas Competitiveness KENYA NATIONAL ELECTRONIC SINGLE WINDOW SYSTEM (KENYA TRADENET) FREQUENTLY ASKED QUESTIONS Introduction BestpracticesrequirethataSingleWindowSystemismanagedcentrallybyan independentcorporateentity,toenableappropriateGovernmentAgenciesand Authoritiestoreceiveandaccessinformationrelevantfortheirpurposes.InKenya, theGovernmentestablishedtheKenyaTradeNetworkAgency(KENTRADE)in January2011toimplement,operationalizeandmanagetheKenyaNational ElectronicSingleWindowSystem(KenyaTradeNetSystem)andtofacilitate internationaltrade.KenyaTradeNetisanonlineGovernmenttoBusiness(G2B) tradingplatformforelectronictradethatintegratespublicandprivatesectors tradingtransactions.Itimplementstheconceptofone-stopshop,paperlesstrade thuspositioningKenyaastheleadingnationintheEastAfricaRegion(EAC)to embrace comprehensive electronic trade transactions. TheimplementationoftheKenyaTradeNetSystemcommencedin2012andthe SystemwentliveonOctober30,2013.TodateKenTradehassuccessfully implemented18modulesandtheirfunctionalitiesandallkeyPartnerGovernment Agencies(PGAs)involvedintheissuanceofimportandexporttraderelated documentation have their process automated via the Kenya TradeNet System. ThefollowingaresomeoftheFrequentlyAskedQuestionsabout implementation of the Kenya TradeNet System 2 1.What is a Single Window System and is it the same as the Kenya TradeNet System?ASingleWindowSystemisbasicallyatradefacilitationtoolthatenablesparties involvedininternationaltradetosubmitregulatoryimportandexportrelated documentationtolodgetheirdocumentsthroughaSingle platformhencethename Single WindowSystem. Kenya TradeNet System is a trade mark namefor the Single Window System in Kenya 2.How does the Kenya TradeNet System facilitate trade in Kenya? TheKenyaTradeNetSystemfacilitatestradebyexpeditingandsimplifying informationflowsbetweentradersandtheGovernmentAgenciesinordertobring meaningfulgainstoallpartiesinvolvedincrossbordertrade.Theobjectiveofthe SystemistofacilitateInternationaltradeinKenyabyreducingdelaysandlowering costsassociatedwithclearanceofgoodsattheKenyanborders,whilemaintaining therequisitecontrolsandcollectionoflevies,fees,dutiesandtaxes,where applicable, on imports or exports. 3.What was the previous scenario before the implementation of the Kenya TradeNet System? What is the current scenario? Prior to implementation of the Kenya TradeNet System, the clearing System for cargo atvariousborderpointswerefacingnumerouschallengesthatcompromisedthe countrysabilitytomaximizebenefitsthatareaccruedwithefficientSystems.For example,thedocumentationproceduresassociatedwithinternationaltradewere largely manual, resource intensive and expensive.Secondly, the traders had to deal separatelywithamultipleofgovernmentagencieswhichsomehadnoelectronic Systems.Thirdly,theusualinefficiencyoftradedocumentationprocessescreated perennial problems of delays in clearance of goods at the Kenyan ports on the Trading community which resulted in high transaction costs. WithstakeholdersnowusingtheKenyaTradeNetSystem,thecargodocumentation isnowtransmittedelectronically;itissubmittedonlyonceandthesameis transmittedtotherelevantGovernmentAgencies.Allkeyplayersare integrated/interfacedthroughtheKenyaTradeNetSystemplatformthroughwhich theycancompletetheirproceduresforthemovementofgoodsinasimplified frameworkatminimumtimeandcostwithoutphysicallygoingtovarious Government Agency offices 3 4.Who is eligible to log into and use the Kenya TradeNet System? All parties involved in the import and export (international trade) are eligible to use theKenyaTradeNetSystemportal.TheseincludePartnerGovernmentAgencies, CustomsAgents, Banks,Insurance,Consolidators,ContainerFreightStation,Ground HandlingAgents,ShippingAgent,Exporter/ImporterandCourierService.Allthe above can apply for registration to use the Kenya TradeNet System and they will get theirindividualaccountscredentialsdependingontheactivitiestheyauthorizedto perform. 5.How can a trader get access to the Kenya TradeNet System? ATradercangetaccesstotheKenyaTradeNetSystemthroughtheKenTrades website(www.kentrade.go.ke).Therearelinksprovidedatthebottomofthe Agencyswebsiteshomepage,whichcanbeaccessedbyclickingontheTradeNet portal. 6.AsatradercanIregistertousetheKenyaTradeNetSystemfrommy mobile phone or tablet? Yes, a trader can register from a smart phone or a tablet as long as there is sufficient internet connectivity. 7.IfIdonotcompletetheregistrationprocess,canIcontinuelaterordoI have to restart from the beginning?Toregistersuccessfully,atraderhastostartandcomplete theregistrationprocess, this is because the registration process is short and detailed. 8.HowisPersonalIdentificationNumber(PIN)activatedintheKenya TradeNet System? There are two important steps in activating PIN in the Kenya TradeNetSystem. PIN Activation and PIN Opting in.PIN Activation is done after confirmation of the PINs existence from Kenya Revenue Authority (KRA) itax System by KENTRADE Staff. This means that the relevant PIN has been created in Kenya TradeNet System (Exists). However,foronetobeabletotransactbusinessthroughtheSystemthePINhasto beoptedin.PINOptinginisdonebytherelevantofficersinthevariousPartner Government Agencies (PGA).This means that the PIN has been authorized by the PGA to transact business with the PGA. 4 Please note that the following PGAs have authorized KenTrade staff to opt in PINs for importers/exporters on their behalf: Kenya Revenue Authority (KRA), Department of VeterinaryServices(DVS)andKenyaDairyBoard(KDB).However,fortheClearing and Forwarding Agents (C&F), PIN opting in is done by KRA staff. 9.Whataretheservicesand/ordocumentsthatarecurrentlyprocessed /available through the Kenya TradeNet System? The services that are available through the Kenya TradeNet System are Submission, Processing,PaymentsandApprovalofcargoclearancedocumentselectronically. The main documents processed through the System include: Unique Consignment Reference(UCR) Impending Arrival Report (IAR) Bay Plan (BAPLIE)Manifest Sea Air ManifestManifest Road Import Declaration Form (IDF) Dynamic Risk ManagementSecurity Bonds ExemptionsPayments records Availability of attachments Cargo Release dash board ReportsImport/ Export Permits issued by the following Partner Government Agencies (PGAs): oKenya Revenue Authority oKenya Bureau of Standards oKenya Plant Health InspectorateServices oPharmacy and Poisons Board oPort Health,oAgriculture,FisheriesandFoodAuthority-HorticulturalCrops Directorate oAgriculture, Fisheries and Food Authority -Sugar DirectorateoAgriculture, Fisheries and Food Authority -Coffee Directorate oAgriculture, Fisheries and Food Authority -Tea Directorate 5 oDepartment of Veterinary Services oKenya Diary BoardoRadiation Protection Board oPest Control and Produce Board oKenya Wildlife Services oNational Biosafety AuthorityoCentral Firearms Bureau,oNursing Council of Kenya oNational Environment Management Authority oKenya Medical Laboratory Technicians and Technologists Board oOGEFREM 10.IsthedatasentthroughtheKenyaTradeNetSysteminreal-timeor transmitted later? TheDatasentviatheKenyaTradeNetSystemisRealtime.TheKenyaTradeNet System is web based and running under the most current Technology. 11. What is meant by cut off with regards to the Kenya TradeNet System? ACutOfforcutoverinsimpletermsmeansstoppingorinterruptinganactivity. Cut - Off with regards to implementation of the Kenya TradeNet System implies that therelevantGovernmentAgencieshaveterminatedtheirold,manualorlegacy Systems and transitioned to an electronic platform (Kenya TradeNet) for lodgment of the import and export related documentation. 12. Why is a cut off necessary? Thecut-offisnecessarybecauseitallowsallstakeholderstomigratetothenew Systemandbenefitfromitsuse.Themainadvantageisthatdigitalapplicationsare usedinlieuoftraditionaldocumentationtherebyspeedingupdocumenttracking, increasing the reliability of documents and enhancing compliance.12. Who has been affected by the Kenya TradeNet System cut off? Allstakeholdersinvolved in theclearanceof cargoatallborderentry/exit pointsin Kenya have been affected by the cut -off. 6 13. What happens to those who default or do not transition to the Kenya TradeNet System? Onceallcut-offrequirementshavebeenadheredtoandallusersareonboard, KenTradewillcontinuemonitoringtheuptakeandusageoftheSystem,and resolvinganychallengesaffectingSystemusers.Thosedefaultingwillbedefyinga Governmentdirectiveanddenyingthetradersanopportunitytoimprovetheway international trade transactionsarein Kenya.Thisisakin tosupporting thecurrent inefficient process that are detrimental to economic growth. 14. Are there challenges experienced by stakeholders since the cut - off and if so, how have they been addressed? There has beenimpressive uptake in the usage of the Kenya TradeNetSystem since theJuly1,2015cutoffdate.TheSystemhasbeenintegratedwithseveralPGAs Systems.WhileitisnotunusualforInformationTechnologySystemstohave challenges, the technical teams are constantly and closely monitoring the System as a mitigation measure but also addressing challenges that may arise. 15.TheNationalTreasuryissuedapublicnoticethateffectiveJuly1,2015all imports andexports related document are to be processed through the Kenya TradeNet System. What does this mean and what are traders doing differently? ThePublicNoticewastonotifyKenyaTradeNetSystemusersofthemodulesthat hadbeencompletedandwereoperational.ThisessentiallymeantthatfromJuly1, 2015 traders processing documents from Partner Government Agencies (PGAs) were able to;Submit all cargo clearance related documents electronically through the Kenya TradeNetSystemforprocessingandapprovalbyvariousGovernment Agencies Make electronic payments through the Kenya TradeNet System ReceiveapproveddocumentselectronicallythroughtheKenyaTradeNet System 7 16. How are payments done through the Kenya TradeNet System? Registered traders/Clearing Agents can log into Kenya TradeNet System portal to lodge application for permits/IDF and generate an eSlip.There are clear steps on how to generate e-slips through the TradeNet System which then allows the trader to make payments over-the-bank counter or via a mobile platform in case of IDFs. 17.DoTradersstillneedtogothroughbrokerstoenabletraderelated documents to be processed? TheKenyaTradeNetSystemallowstraderstolodgetheirowndocuments(Permits andIDFs).However,thetradermaychoosetonominateaClearingandForwarding Agent to lodge documents on their behalf.TradersarehoweverurgedtobecautiousonlytouseClearingandForwarding Agents registered by Kenya Revenue Authority (KRA) as Customs Agents. 19.Whichbankscanonepayfore-slipsgeneratedviaKenyaTradeNet System? Currentlytraderscanmakethepaymentsfore-slipsthrough;NationalBank,I&M, Cooperativebank,KenyaCommercialBank,StandardCharteredbank,Citibankand BankofAfrica.TherestofthebanksarepilotingontheSystem.Thisservicewill progressivelybeavailableatotherbanksoncetheyarecomfortableinusingthe Kenya TradeNet System. 20. In terms of revenue collection, how efficient has the System been?TheSystemhasintegratedwiththeKenyaRevenueAuthorityi-TaxSystemto facilitateelectronicpaymentsforapplicationsmadethroughtheKenyaTradeNet System which has now facilitated a faster and more efficient payment process for the Trade community. 21.HowdothevariousGovernmentAgenciessuchasKEBS,PPB,orKEPHIS reconcile the individual licenses issued? TheKenyaTradeNetSystemhasaninbuiltreportingmodulethatgenerates electronic reports hence making reconciliation of records very easy. 8 22. What type of trainings are conducted for the Kenya TradeNet System? The Kenya TradeNet System trainings are conducted based on the stakeholders need and modules that are available on the Kenya TradeNet System. The training include: TradersModule(UniqueConsignmentReferenceNumber,ImportDeclarationForm, ConsignmentDocument,Masterdocument,Payments)PortModule;Declaration Submission Module; Partner Government Agency Module. 23. Who is eligible to be trained on Kenya TradeNet System?The following stakeholders are eligible to apply for the Kenya TradeNet System trainings; Partner Government Agencies The Clearing and Forwarding Agents Exporters Importers Shipping Agents BanksInsurance Companies Consolidators Ground Handlers Container Freight Stations 24. How long does the trainings take? The trainings usually take 1 3 Days depending on the module 25. Where are the trainings conducted? The trainings are conducted at KenTrade offices in Nairobi and Mombasa. Depending ontheneed,trainingsarealsoorganizedatotherborderpointsmainlyinKisumu, Malaba, Isebania, Busia and Namanga. 26.Whatwillhappentostakeholderswhohavenotreceivedanytrainingon the Kenya TradeNet System? Training is a continuous process and anyone who has not been trained is advised to enroll for training and we will provide the training requirements. Upon successfully registering for training the clients will be provided with a training schedule. 9 27. Who do I contact if I need to be trained? YoucancontactourTrainingCoordinatoronkneswstraining@kentrade.go.keoryou can contact us through the email addresses and phones numbers indicated at the end of this document. 28. Does the Kenya TradeNet System have the capacity for mass adoption? Yes.TheKenyaTradeNetSystemhasbeendesignedtotakecareoftheexpected volumes once all stakeholders have been brought onboard the System. 29. Is there guarantee that the Kenya TradeNet System will not crashed down? What are alternatives in the event that the System develops teething problem? KenTradehasensuredthatadequateredundancieshavebeenprovidedtoensure uptimefortheSystemwithincreasedtransactionload.Therearemultiple infrastructureequipmentforeachservice(Database,Application,Webetc).Our highlyskilledandexperiencedtechnologyimplementationpartner(CrimsonLogic) wasalsoinstrumentalinadequatelysizingtheInfrastructuretoensurethatthe Systemdoesnotcrashwithheavytransactionload.Additionally,theSystems performance has been tested and the System has been in use for almost 2 years and has handled increasing load gracefully. 30. How can traders be sure that hackers will not interfere with the System and gain access to confidential information? AsperICTSecuritybestpracticeusedtosecurekeyNationalInformationSystems, KenTrade has implemented a host of cutting edge Information Securitytechnologies toprovideassuranceofSystemsecurity.KenTradealsohasahighlyqualifiedICT team that works to ensure Information Systems security. 31. Will implementation of the Kenya TradeNet System result in job losses? No.Wedonotexpectanyonetolosetheirjobasaresultofimplementationofthe Kenya TradeNet System. The System will instead enable the business environment to trade efficiently. An improved business environment is expected to lead to a reduced costofdoingbusinessandincreasedefficiencyintrade.ThiswillincreaseKenyas competitiveness and attract more Foreign Direct Investment (FDI) which will create more jobs. 10 32.HowhastheuptakeoftheKenyaTradeNetSystembeensinceitsofficial launch? WehaverecordedimpressiveuptakesincetheSystemGoLiveonOctober30, 2013 and the subsequent official launch on May 02, 2014.The implementation was doneinaPhasedapproachandallthestakeholdershavebeenverysupportive.We engaged stakeholders throughout the planning and implementation stages to ensure thattheyarepartoftheprocess.Moreimportantly,wecontinuetoconduct sensitizationcampaignstargetingstakeholdersinboththepublicandprivate sectors.

33. What benefits has the System generated for government so far?FirstandforemosttheKenyaTradeNetSystemispartoftheWorldTrade Organization(WTO)effortstoeasetradeandenhancecomplianceaswellas simplifyingbureaucraticproceduresinthemovementofgoodsacrossborders.The System It has also brought greater harmonization and better sharing of relevant data acrosstheGovernmentdepartments/Systemresultinginimprovedefficiency, transparency and effectiveness of official controls. This enhances revenue collection andreducecostofdoingbusinessforboththeGovernmentandthebusiness community.

34. What benefits can you say will be derived from it after one year, mid-term (5yrs), and in the long run? Onceallthemodulesarecompletelyimplementedandoperationalized,theSystem willeliminate/reducethecumbersomepaperwork.TheUCRconceptfacilitates creationofelectronicfilesandthereforedoesawaywiththeneedforpaperbased files.TheintroductionofaDynamicRiskManagementmodulehasintroduced objectivityanderadicated/reducedsubjectivityassociatedwithstaticcargo targeting methods. It has also reduced human contact and enhanced transparency. Additionally,theprojectpresentsanopportunityforadditionalonlineservicesand informationtothebusinesscommunityaswellasanopportunitytopartnerwith youths in the provision of trade facilitation services to the business community. TheSystemwillalsodrasticallyreducedelaysandtransactioncostsandhence improve the doing business environment in Kenya that will lead to increased Foreign DirectInvestmentleadingtocreationofnewjobsandadditionalrevenuetothe Government. 11 TheKenyaTradeNetSystemisoneoftheKenyasVision2030Projectsunderthe Economicpillar,andweexpectthatitwillhelpKenyatoimproveonWorldBank Doing Business Ranking report. 35. How is the Kenya TradeNet System funded? TheKenyaTradeNetSystemisfundedbytheGovernmentofKenyawithsupport fromdevelopmentpartnersmainlytheInvestmentClimateFacilityforAfrica(ICF) andInternationalFinanceCorporation(IFC).Theprojecthasalsoreceivedsupport fromTradeMarkEastAfrica.Wehopethatotherdevelopmentpartnerswillalso come on board to assist in the financing other initiatives that will enhance successful implementation of the Kenya TradeNet System 36. What is the future of the Kenya TradeNet System? TheSingleWindowConceptisnotnew.ItiscurrentlyoperationalinSingapore, Korea,Malaysia,Mauritius,TunisiaandGhanajusttomentionafew.Studiesfrom thesecountriesindicatetheireconomieshaverealizedlargesavingsvia:Reduced inefficiencies,improvedtransparencyandvisibilityintradedocumentation processing, Reduced manual documentation/paperwork, Reduced cost of capital (JIT Concept);Reduceddemurrage,improvedspaceutilizationatthePortsincreased capacity utilization for higher volume turnover.InternationalOrganizationssuchasWorldTradeOrganization(WTO),World CustomsOrganization(WCO),UnitedNations;AfricaAllianceforElectronic CommerceamongothersarepromotingtheSingleWindowSystem(SWS)Concept as the future tool for efficient trade facilitation. 37. Where are KenTrade Offices located? OurHeadofficeislocatedinNairobiandwealsohaveafacilitationofficein Mombasa which are located as follows: Nairobi : Embankment Plaza , Longonot Road,Upper Hill Mombasa: Jubilee Arcade 3rd Floor, Moi Avenue Inadditiontotheabovewealsohaveregionalrepresentativeswhoarebasedin Malaba, Busia and Namanga border points. 12 38. What are the opening hours of KenTrade Contact Centre and Customer Service offices? Our contact center and customer services offices are open from 7.00 am to 7.00 pm, Monday to Friday and 8.00 am to 2.00 pm on Saturday and Sunday. We are also open over public holidays from 8.00 am to 2.00 pm. You can also contact us via email address; contactcentre@kentrade.go.ke and customercare@kentrade.go.ke; phone numbers: 0204965000 or 070995000