How KRA’s authorised operators are facilitating cross-border trade

Besides its role of revenue collection, the Kenya Revenue Authority (KRA) is one of the government agencies mandated to facilitate trade in the country. The KRA has implemented various reforms to enhance trade facilitation and ease the cost of doing business while improving compliance with relevant laws and regulations.

The implementation of Authorised Economic Operators (AEO) programme, for example, has greatly improved cross-border trade within the East Africa Community (EAC) region and the rest of the world.

AEO expedites the movement, release and clearance of goods at ports and border stations by creating a partnership between customs and businesses where mutual trust is established.

The consignments of businesses under this programme undergo less scrutiny at the border and ports compared to other regular cross-border traders.

In addition to faster clearance times, the AEO programme has boosted trade activity in Kenya thereby creating increased opportunities for young job seekers in the labour market. This is besides the recognition of Kenya as a preferred trade destination and increased foreign direct investment in the economy.

The programme has also enabled the KRA to enhance revenue collection. It is significant to note that approximately 30 percent of Customs revenue is paid by AEO importers. The authority intends to grow this figure by enhancing trade facilitation for the current AEOs and expanding the programme to include other compliant taxpayers in other categories, especially those in warehousing and MSMEs.

The benefits of the AEO programme are not limited to businesses alone. The programme is also critical in ensuring the security of our supply chain, which is essential for national security and economic growth.

A secure supply chain helps to prevent illegal trade activities, such as smuggling and counterfeiting, which can have a detrimental impact on our economy.

In addition to enhancing security, the AEO programme also helps to reduce the cost of doing business for many companies. By reducing the time and resources that businesses need to spend on customs clearance procedures, the AEO programme has helped to make Kenya a more attractive destination for foreign investment.

This, in turn, has helped to create more jobs and boost our economy. To date, 338 companies have received AEO accreditation.

The writer is the Acting Commissioner for Customs and Border Control, the Kenya Revenue Authority.