New e-Clearance System for Kenyan Customs

A new Act that took effect in July has linked the online customs clearance system to the Kenya Revenue Authority and the Kenya Ports Authority, giving the State more tools to tackle tax evasion. “The system shall serve as a single entry point and platform for any person involved in trade and transport to lodge documents electronically, including import or export documents for processing and approval,” the Act reads in part. The law ensures that imports or exports are cleared electronically and ensures compliance with all taxes and duties. Traders risk up to Sh500,000 in fines or a year in jail if they fail to register online for clearance of all imports and exports as Kenya moves to plug loopholes. This follows the creation of the National Electronic Single Window System, which is now the only entry point to register and clear all inbound and outbound cargo.