Opening Up the Cargo Tracker Seal Market: What KRA’s New Move Means for Importers and Transporters

 


The Kenya Revenue Authority (KRA) has announced a significant policy shift in the management of electronic cargo tracking seals, opening the market to multiple vendors and allowing traders and transporters to use approved, user-owned devices. This move marks a departure from the long-standing single-vendor procurement model and signals a broader push towards efficiency, competition, and modernization of customs controls.

What Has Changed?

KRA has now adopted a multi-vendor, user-owned model, under which:

  • Multiple suppliers can provide electronic cargo tracking seals, subject to KRA approval.
  • Transporters and traders may procure and use their own compliant tracking devices.
  • KRA will continue to monitor cargo centrally through its customs systems, ensuring security and compliance standards are maintained.

All approved devices must meet strict technical and security specifications, including tamper detection and real-time data transmission to KRA systems.

If you'd like to talk to a tax and finance expert, you can click here to book a free consultation appointment.

Key Implications for Businesses

1. Reduced Delays and Port Congestion
By widening the pool of suppliers, KRA aims to address persistent shortages of tracking seals that have previously slowed cargo clearance. Improved availability is expected to reduce dwell time at ports and inland container depots.

2. Increased Competition and Potential Cost Savings
Opening the market introduces competition among vendors, which may lead to more competitive pricing and better service delivery for transporters, importers, and clearing agents.

3. Greater Operational Flexibility
The user-owned model allows logistics companies to plan better, integrate tracking devices into their operations, and reduce dependence on centrally issued equipment.

4. Continued Emphasis on Compliance
While procurement has been liberalised, KRA has made it clear that compliance remains non-negotiable. Any tampering, signal loss, or deviation detected through RECTS will still trigger enforcement action.

Regional Trade Considerations

The move aligns with ongoing efforts within the East African region to harmonise customs controls and facilitate smoother transit trade. A more flexible cargo monitoring framework supports faster cross-border movement while safeguarding revenue for partner states.

If you'd like to talk to a tax and finance expert, you can click here to book a free consultation appointment.

RWK Africa’s View

This policy shift reflects a growing recognition that technology-driven tax and customs enforcement must go hand-in-hand with ease of doing business. If implemented transparently and supported by clear approval guidelines, the multi-vendor model could significantly improve Kenya’s trade logistics environment.

However, businesses should remain vigilant. Compliance risks will not diminish simply because procurement has been liberalised. Proper documentation, accurate customs declarations, and adherence to transit conditions remain critical.

 

For support and advice, contact RWK Africa — your partner in tax compliance.

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