This archive report was first published on 16 October 2019.
Published on October 16, 2019, Kenya is pushing to bring all East Africa Community member countries on board the regional electronic cargo tracking system to streamline cargo transportation and boost tax collection.
The system, known as Rects, aims to avoid dumping of goods, minimize travel delays, improve cargo security, and boost tax revenues. Speaking at the 2019 Taxpayer's Month Forum, Ukur Yatani, the acting Cabinet Secretary for the National Treasury, said plans are underway to roll out Rects to include South Sudan, Tanzania, and ultimately destinations outside the EAC bloc.
However, the biggest challenge lies in Tanzania, which has its own electronic cargo tracking system, Tancis, a multi-vendor platform owned by private companies. Negotiations with Tanzania are ongoing, but the timelines are unclear.
Richard Kamajugo, Senior Director for Trade Environment at Trademark East Africa, noted that the country joining Rects will improve cargo transit for the Democratic Republic of Congo and Rwanda.
Rects has been in operation for two years, but the non-adoption of the same by Tanzania, South Sudan, and Burundi is limiting its effectiveness. The system provides real-time tracking of cargo trucks between the port of Mombasa and destinations in Kenya, Uganda, and Rwanda through the use of electronic seals on cargo being tracked by satellite from a centralised tracking centre.
