Cost Of Exporting Fresh And Dry Produces Drops 62 Per Cent On Reduced Administrative Cost

The cost of exporting fresh and dry produce has dropped 62 percent on reduced administrative cost through harmonization of export trade procedures.

The Kenya Trade Network Agency (KenTrade) and the National Trade Facilitation Committee (NTFC) have made it easy for export application of coffee, tea, flowers, beans, peas, avocados, nuts and oil crops products, cotton, sisal, among others.

KEPHIS is a regulatory and permit issuing state agency, which processes export clearance through the National Electronic Single Window System, the trade facilitation portal managed by KenTrade.

KenTrade Acting Chief Executive Officer David Ngarama said the simplification of KEPHIS’ registration procedure has reduced administrative burden cost

from Sh40,197.35 to Sh15, 287.29, saving businesses Sh24,910.06 in additional cost.

“KEPHIS has since implemented the short-term proposals identified. It is important to note that these significant simplification results were achieved without changing any law and regulation,” Ngarama said.

“The measures to simplify were implemented right away thanks to effective managerial oversight at KEPHIS and cooperation with KenTrade and the NTFC Secretariat,” he added.

Lowering of administrative cost follows a series of simplification workshops held by the National Trade Facilitation Committee and KenTrade with an aim to reduce export procedures on coffee, tea, flowers, beans, among other exportable products.

Currently, administrative steps have reduced to five 5 from 10, mandatory requirements to just 2 down from 13 while the duration of procedure is now at 6 to 14 days.

Further to the reduction of the required documents, KEPHIS has also implemented the proposed application form in the registration procedure.

Previously, traders were required to submit a cover letter addressed to the Managing Director, stating their intent to export, the market of export, crop to export, among other details – which is complex to structure.

Implementation of the form has drastically reduced the number of attachments to accompany the cover letter, as the required information is now outlined on the new application form.

“KEPHIS is happy with the efforts made to simplify its procedures as this has eased their work when it comes to registration,” said KEPHIS Managing Director Theophilus Mutai.