MINISTER FOR FINANCE COMMISSIONS SCANNERS
And Announces More Government Funding for KRA’s Scanners Programme

Kilindini Port , Mombasa - 18 th October 2005

The Minister for Finance, Hon. David Mwiraria today officially commissioned the two cargo scanners at Kilindini Port , Mombasa . The scanners, purchased from a Chinese company at a cost of Kshs. 700 million, are part of Kenya ’s strategy to secure the international trade supply chain while facilitating the movement of legitimate trade. Hon. Mwiraria announced that the government had allocated a further Kshs. 700 million for the purchase of more scanners in the 2005/2006 financial year.

“The government has provided resources to finance KRA’s ambitious reform and modernisation programmes that are geared to position the organisation to better deliver on its mandate,” Hon. Mwiraria said.

Due to its strategic geographic position, Kenya has been the target of terrorist attacks in the recent past. This is an international problem, and relevant international organisations have agreed on mechanisms to mitigate the threat of global terrorism.

For example, the International Maritime Organization (IMO) made amendments to the Safety of Life and Sea Convention and the International Ship and Port Security Code. Because of these amendments, port authorities are required to put in place greater controls on access to port areas, and enhance the syllabus for seafarers. On the other hand, the World Customs Organization has agreed on a set of measures designed to secure the international trade supply chain, without hindering the movement of legitimate trade. The use of container scanners is part of a global supply chain security strategy.

In addition to the allocation for purchase of scanners, the government allocated Kshs. 200 million for customs computerisation in the 2004/2005 financial year, and it has released an additional Kshs. 58 million in the 2005/2006 financial year for the project.

To improve the capacity of Kenya ’s Customs Services in marine surveillance, Kshs. 320 million , for the financial years 2004/2005 and 2005/2006, has been allocated for the purchase of customs motorboats. The government is making these investments at a time when the regional and global trading environment has changed drastically from what it was a few years ago. At the regional level, increasing trade within regional economic blocs is leading to increased competition among countries for investment and trade.

Sudan is stabilising after twenty years of civil war, and imports of goods for post-conflict reconstruction will have an effect on the movement of goods in Kilindini Port. The economy of Rwanda is growing after the 1994 conflicts. There is great hope for peaceful settlement of conflicts in Burundi and the Democratic Republic of Congo. Uganda has become Kenya ’s largest trading partner, and is attracting a lot of foreign investment. All these countries partly or wholly depend on the efficient operations of Kilindini Port for importation of the required raw materials and finished products, and for exportation to other countries by sea. Therefore, any investments to improve the efficiency of customs and port operations in Mombasa have a far-reaching impact on Kenya and the neighbouring countries.

Stakeholders

KRA’s Commissioner General M. G. Waweru highlighted the excellent relations between the Authority and the Kenya Ports Authority, noting that this had led to improvements in the efficiency and effectiveness of customs, port and other procedures at the Kilindini Port. This has been achieved by using the Taskforce on Documentation Procedures in Kilindini, and the Northern Corridor Stakeholders’ Forum. Mr. Waweru is the Chairman of the forum, which incorporates government and private sector organisations from Kenya , Uganda , Rwanda , Burundi and the Democratic Republic of Congo with an interest in the movement of goods along the Northern Transit Transport Corridor served by Kilindini Port.

Hon. Mwiraria reiterated the need for tax and customs officials to do their work with utmost integrity to create a level playing field for business, and help the government do its part in generating wealth and prosperity for Kenya ’s citizens. He also noted that by upholding integrity, KRA safeguards the nation from various threats to Kenya ’s sovereignty and safety, and gave examples of these threats as entry of drugs and narcotics, counterfeit products that may pose a risk to health and safety, and global terrorism.

KRA is piloting the Customs Canine Section at the Jomo Kenyatta International Airport (JKIA), Kenya ’s largest airport, which is also a regional hub. There are two teams at JKIA, part of an overall strategy of increasing the capability of customs to detect and interdict drugs and narcotics. The dog handlers have received training at the Japan Customs Canine Training Centre, and both the handlers and the dogs continue to receive refresher training locally. In addition to the obvious deterrent effect of Canines, the two teams at JKIA have already made four seizures.

Sustainable Development

The commissioning of the scanners was part of weeklong activities to celebrate the 2005Taxpayers’ Week and the 10 th Anniversary of KRA’s existence.

“The theme for the week - Kulipa Ushuru ni Kujitegemea - is a good reflection of the government’s commitment to achieve sustainable development for the citizens of Kenya through local initiatives and funding,” said Hon. Mwiraria.

Roughly translated from Kiswahili as To Pay your Taxes is to Set our Country Free, the theme is in line with successive post-independence governments’ goals to reduce the number of people that are going hungry and living in poverty, to expand access to educational opportunities for citizens, and to improve their health conditions.

Loans and grants to Kenya from external sources have reduced over the years, in spite of continued promises by developed countries for further support. The government has therefore had to shift its focus from reliance on foreign sources of funding to depending on domestic sources, and acknowledgement of efficient and effective customs and tax administration as a powerful driver of development.

Those present during the commissioning ceremony included the Japanese Ambassador to Kenya H. E. Mr. Satoru Miyamura, the Chairman of the KRA Board of Directors Mr. Leonard J. Mwangola, the Managing Director of Kenya Ports Authority Mr. Brown Ondego, KRA’s Commissioner for Support Services Mr. Mumo Matemu and the Acting Commissioner of Customs Services Mrs. Wambui Namu.

Press Inquiries

Mrs. Maureen Njongo, Acting Deputy Commissioner Corporate and Public Affairs, Kenya Revenue Authority. E-Mail: Maureen.Njongo@kra.go.ke

Read and download Full Speech by Mr. M. G. Waweru.