What happened

The Kenya Revenue Authority (KRA) announced that it will launch a new digital cargo tracking system next week. The system is designed to monitor the movement of imported goods from the port of Mombasa to inland destinations in real time. KRA says the platform will link customs, freight forwarders and transport operators on a single electronic interface. The rollout follows a pilot that ran for six months in selected terminals. The announcement was published on The Kenyan Wall Street, confirming the timeline and the technology partner involved.

Context and background

KRA, the agency responsible for tax collection and customs administration, has been under pressure to modernise Kenya’s trade facilitation processes. Over the past few years, importers have complained about lengthy clearance times, paperwork bottlenecks and occasional cargo mis‑declarations. In response, KRA commissioned a feasibility study in 2022 that recommended a cloud‑based tracking solution to replace the legacy manual logs.

The chosen platform integrates GPS data from trucks, electronic data interchange (EDI) with shipping lines and a dashboard for customs officers. The technology partner, a regional fintech firm, completed a six‑month pilot at the port of Mombasa and two inland depots, showing a 30 % reduction in average clearance time during the trial. After reviewing the pilot results, KRA secured cabinet approval and allocated budget for a nationwide rollout.

Historically, Kenya’s cargo tracking relied on paper manifests and sporadic phone calls between agents and customs. The lack of a unified system created opportunities for under‑invoicing, smuggling and revenue leakages. The new system aims to close those gaps by providing end‑to‑end visibility, automated alerts for discrepancies and a transparent audit trail for tax authorities.

Compared with what is normal

Under the previous manual regime, the average time from vessel discharge to final release at the inland depot ranged from five to seven days, depending on cargo type and port congestion. Delays often stemmed from missing documents, manual data entry errors and limited communication between stakeholders. The new digital platform promises to cut that window to two to three days for most shipments, aligning Kenya’s performance with regional benchmarks such as Tanzania’s e‑Cargo system.

• Manual tracking typically involved paper manifests that could be lost or altered, leading to revenue losses estimated at several hundred million shillings annually.
• During the pilot, the digital system recorded a 25 % drop in cargo‑related disputes, indicating fewer mismatches between declared and actual goods.
• Compared with the 2023 average clearance time of 6.2 days, the projected post‑rollout average is expected to be around 2.8 days, a reduction of more than 50 %.

Why it matters

For Kenyan SMEs that import raw materials, the faster clearance translates into lower working‑capital costs and reduced storage fees at the port. Importers can also expect more accurate duty assessments, as the system cross‑checks invoices against cargo weight and volume in real time. The transparency reduces the risk of corrupt practices, protecting legitimate businesses from unfair competition. Moreover, the government anticipates higher revenue collection because under‑declared shipments will be harder to conceal.

Practical steps

• Register your company on the KRA cargo tracking portal before the system goes live; the registration window opens three days before rollout.
• Ensure all shipping documents are digitised and uploaded to the portal, including invoices, packing lists and Bill of Lading.
• Coordinate with your freight forwarder to install the required GPS tracking device on each truck that transports cargo inland.
• Train your logistics team on how to interpret the dashboard alerts and respond promptly to any discrepancies flagged by customs.

Tax Planning & Compliance services at Beavoren Ventures can help you align your import processes with the new system, ensuring accurate duty calculations and timely filings.

Talk to our team at Beavoren Ventures - info@beavorenventures.co.ke - to set up your systems correctly.

Disclaimer: This article is informational and does not constitute formal tax, audit or legal advice. For guidance specific to your circumstances, please contact Beavoren Ventures.