Kenya Pipeline Company (KPC) and The Kenya Revenue Authority (KRA) are set to revolutionize logistics in East Africa through the integration of their SAP and iCMS systems. The integration testing phase is scheduled to begin soon, with results expected to be presented to KPC Managing Director Mr Joe Sang and KRA Commissioner General Mr Humphrey Watanga by February 3, 2025.
“The integration of these systems is a game-changer for our logistics and supply chain operations. It will bring unprecedented efficiency and transparency to our processes,” said Mr. Joe Sang during a tour of PS 28,27 and PS25.
The integrated system is scheduled in two weeks, “We’ve included a robust fallback mechanism to ensure uninterrupted operations during the transition phase. This is key to maintaining operational stability and customer satisfaction.” Said the MD
A notable feature of the integration is the operationalization of Smart Gates by KRA, aimed at reducing truck turnaround times by half. The gates will improve throughput at KPC depots, significantly benefiting stakeholders in the value chain.
“KRA is committed to ensuring smooth customs clearance and operational efficiency across the region. This partnership with KPC is a step forward in our journey toward seamless trade facilitation,” said Mr Watanga.
As from February 1, customs clearance for South Sudan will occur at the port of entry in Mombasa. This shift will eliminate delays at depots and the Malaba border, pending South Sudan’s full integration into the East African Community (EAC) Single Customs Territory (SCT). Synchronization of customs processes with the Democratic Republic of Congo (DRC) is still under consideration.
Looking ahead, the integration with KPC is expected to pave the way for further collaborations with the Uganda Revenue Authority (URA) and Rwanda Revenue Authority (RRA), enabling seamless truck clearance across the SCT framework.
KRA has also committed to aligning its working hours with KPC’s depot operations to support early and late loading activities. This adjustment will ensure that customs processes remain synchronized with KPC’s operations, minimizing bottlenecks while the systems integration is underway.
In addition, the Ministry of Transport has pledged to rehabilitate Kisumu’s Nkurumah Road as part of the FY2024/25 budget. Construction is set to commence within three months, providing vital support to the logistics infrastructure serving the Kisumu depot.
During the briefing, Mr Watanga reiterated the importance of maintaining integrity in operations. “We encourage everyone to report any cases of extortion or misconduct through our whistleblowing channels. Integrity remains the foundation of our service delivery,” he said. To ensure smoother operations, depot-based teams are encouraged to enhance communication and resolve challenges collaboratively. Regional team leads in Western Kenya, supported by terminal managers, will spearhead efforts to improve synergy and operational efficiency. Following the integration, significant improvements in depot efficiency are expected by March 2025.
“This partnership between KPC and KRA is a testament to what can be achieved through teamwork and innovation. We’re setting the standard for logistics across the region.” Said Mr Sang.
Oil Marketing Companies (OMCs) causing delays in truck clearance will face penalties for overnight stays as outlined in the Transportation Service Agreement (TSA). This underscores the shared commitment by KPC and KRA to foster accountability and efficiency in logistics operations.
