KRA Rolls Out New Cargo Tracking System

The Kenya Revenue Authority (KRA) has rolled out a new cargo tracking system aimed at improving the monitoring of goods under Customs control.

In a statement on Tuesday, October 27, the authority said the new system introduces a Multi-Vendor User-Owned Electronic Seals Framework, which changes how electronic seals used to track cargo are supplied, owned and managed.

Join our WhatsApp Channel for the latest news updates.

"Kenya Revenue Authority (KRA) has today commenced the rollout of a Multi-Vendor User-Owned Electronic Seals Framework aimed at improving cargo tracking, reducing operational delays and enhancing the efficiency of cross-border trade," the statement read.

According to KRA, the new framework introduces a more flexible and competitive model for the provision and management of electronic seals, commonly known as e-seals, which are attached to cargo to monitor the movement of goods under Customs control.

It replaces the previous arrangement that had been in place since 2017, under which KRA relied on a single vendor to supply and manage the devices.

"The transition follows consultations with industry stakeholders and seeks to address operational challenges associated with the existing model, including the unavailability of electronic seals at cargo tagging points and the use of ageing devices that may not function optimally," the statement added.

Under the new arrangement, electronic seals will be owned and managed by vendors or users, depending on the commercial agreements reached between the parties.

Cargo owners and other users will also have the flexibility to select participating service providers and agree on arrangements that best suit their operational needs.

All electronic seals deployed under the framework will be integrated with the East African Community (EAC) Regional Electronic Cargo Tracking System (RECTS). 

This will enable KRA to maintain real-time monitoring and end-to-end visibility of goods moving under Customs control.

"This technology has drastically reduced incidents of cargo diversion, smuggling, and theft, ensuring that goods reach their intended destinations securely and on time," the statement further read.

KRA said the multi-vendor model is expected to improve the availability of electronic seals on demand, particularly at cargo tagging points, where shortages have contributed to queues and delays in cargo processing.

By allowing users to choose from participating service providers, the framework is also expected to introduce greater competition and provide more flexibility in accessing cargo tracking services.

"Improved device performance is also expected to minimise unnecessary tracking alerts and associated enforcement interruptions, contributing to faster cargo clearance and turnaround times," the statement concluded.

This comes days after Kenya Revenue Authority (KRA) announced that all cargo imported into the country must be covered by a valid Digital Marine Cargo Insurance (MCI) policy, effective November 1, 2026

In a notice issued on Thursday, October 22, KRA said that it will enforce the new policy jointly with the Insurance Regulatory Authority (IRA).

The Authority clarified that to proceed with Customs clearance, the insurance certificate must be processed through the Digital MCI System and successfully transmitted to the iCMS platform before lodging a declaration.

"Importers and clearing agents are required to process insurance certificates through the Digital MCI System and submit them to the iCMS platform before lodging customs declarations," KRA wrote.

The Taxman warned that consignments that fail to meet the requirement will be blocked from clearance.

"Non-compliant consignments will be blocked from customs clearance. To avoid clearance delays and trade disruptions, ensure full compliance ahead of the enforcement date," the Commissioner for Customs and Border Control wrote.

Additionally, KRA informed taxpayers that the Fringe Benefit Tax Market Interest Rate and the Deemed Interest Rate have both been set at 9% for October, November and December 2026.

It clarified that for deemed interest, a 15% withholding tax applies and must be deducted and remitted to KRA within five working days.

"Employers, businesses and other affected taxpayers are encouraged to take note of these rates and ensure compliance with the applicable tax requirements," the Authority wrote.