KRA ends eight-year reliance on single vendor for cargo tracking seals

KRA ends eight-year reliance on single vendor for cargo tracking seals

The new system allows vendors and users to own and manage electronic seals based on the commercial agreements they reach, giving cargo operators more flexibility in choosing service providers.

The Kenya Revenue Authority (KRA) has officially ended its eight-year reliance on a single vendor for electronic cargo tracking seals, introducing a new multi-vendor framework aimed at improving device availability, reducing cargo processing delays and making cross-border trade more efficient.

The new system allows vendors and users to own and manage electronic seals based on the commercial agreements they reach, giving cargo operators more flexibility in choosing service providers.

The Multi-Vendor User-Owned Electronic Seals Framework replaces the arrangement that had been in place since 2017, under which KRA depended on one supplier to provide and manage the devices used to monitor goods moving under customs control.

The change follows consultations with industry stakeholders and seeks to address challenges experienced under the previous system, including shortages of electronic seals at cargo tagging points and the use of ageing devices that may not work properly.

Under the new framework, users will be free to select participating service providers and agree on arrangements that suit their operational needs. Ownership and management of the electronic seals will depend on the commercial terms agreed upon between the vendors and users.

"All electronic seals deployed under the framework will be integrated with the East African Community (EAC) Regional Electronic Cargo Tracking System (RECTS), enabling KRA to maintain real-time monitoring and end-to-end visibility of cargo under customs control," the Authority said.

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It added that the tracking technology has drastically reduced cases of cargo diversion, smuggling and theft, helping ensure that goods reach their intended destinations safely and on time.

The multi-vendor approach is expected to improve the availability of electronic seals on demand, especially at cargo tagging points, where shortages can lead to queues and delays in processing goods.

By allowing more service providers to supply and manage the devices, KRA said the framework is expected to ease access to electronic seals and improve the movement of cargo through the tracking process.

KRA also expects the new arrangement to improve device performance and reduce unnecessary tracking alerts.

"Such alerts can cause interruptions during enforcement operations, and reducing them is expected to support faster cargo clearance and shorter turnaround times," it said.

The framework will also give private-sector players a greater role in providing cargo tracking solutions while allowing KRA to retain its oversight responsibilities.

The Authority emphasised that it will continue to ensure that goods moving under customs control comply with the required regulations and that their integrity is maintained throughout the tracking process.

The rollout is part of KRA's wider efforts to facilitate legitimate trade, strengthen customs compliance and adopt technology-based solutions to improve service delivery across the trade and logistics value chain.