KRA opens Malaba Border Service Center to enhance trade efficiency

KRA opens Malaba Border Service Center to enhance trade efficiency
courtesy

NAIROBI, Kenya, Oct 11 – The Kenya Revenue Authority (KRA) has opened a border center at the Malaba One-Stop Border Post (OSBP) to enhance trade efficiency and expand revenue collection.

The new one-stop-shop platform will integrate all partner government agencies (PGAs) operating at the Malaba OSBP.

“This collaborative model seeks to break down silos among government entities, fostering synergy and eliminating delays in the clearance process for traders,” KRA said in a statement.

“The cooperation among agencies is expected to enhance trade facilitation and ensure seamless information exchange, including accurate operational data that is crucial for preventing cross-border crimes and trade malpractices including smuggling of goods and human trafficking.”

Currently, the border point handles an average of 2,000 trucks daily, 1,400 for outbound cargo and 600 for inbound cargo, and is expected to boost numbers.

“The new facility aims to enhance the efficiency of border operations, leading to improved revenue collection. Since the establishment of the OSBP, revenue has grown impressively recording a 500% increase from Ksh 962 million in the financial year 2012/2013 to Ksh 5.28 billion in 2023/2024.”

This comes after a recent survey by the East African Community Secretariat and TradeMark Africa revealed that the time required to clear goods at the OSBP has drastically decreased by 76 percent, far exceeding the TradeMark Africa target of 30 percent.

Currently, goods are cleared within a day of arrival, while the facility screens and clears an average of 1,000 travelers on a daily basis. The average time for traveler clearance has been reduced significantly, from two hours to just five minutes.

Key exports to Uganda from Kenya include iron and steel, fertilizers, plastics, animal products, vegetable fats and oils, pharmaceutical products, soaps, lubricants, waxes, candles, modeling pastes, and various beverages.

On the other hand, the country imports cereals, flour, wood products (such as plywood and pine timber), coffee, tea, spices, dairy products, and mineral fuels from Uganda.