Vendors to own e-seals under new KRA model to improve cargo tracking

The Multi-Vendor User-Owned Electronic Seals Framework will now introduce a flexible model for the provision and management of e-seals used to monitor the movement of goods under Customs control. 

It replaces the previous arrangement where KRA relied on a single vendor to supply and manage the devices since 2017. 

Under the new framework, vendors or users will own and manage e-seals depending on the commercial arrangements agreed between involved parties. 

This also means that users will be able to select participating service providers and agree on arrangements that best suit their operational requirements.  

KRA says the aforesaid regulations will be undertaken within regional trading frameworks.

"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," said KRA in a statement on Tuesday.

The taxman said that the changes were made after talks with industry stakeholders aiming to streamline operational challenges associated with the existing model.

Traders have been forced to endure the unavailability of e-seals at cargo tagging points and the use of ageing devices that may not function optimally. 

"The multi-vendor model is expected to improve the availability of electronic seals on demand, particularly at cargo tagging points, helping to reduce queues and delays in cargo processing," KRA added.  

The Commission also noted that the technology has reduced incidents of cargo diversion, smuggling, and theft, ensuring that goods reach their intended destinations securely and on time.

Importers, exporters, clearing and forwarding agents, transporters, bonded warehouse operators, and other stakeholders are encouraged to take note of the transition and plan accordingly.

Currently, 15 vendors have been approved to provide the e-tracking services, and the list can be obtained on KRA's website.