The blockchain system will create a single digital record that every authorised participant in the cargo verification and clearance chain will access instead of repeatedly submitting and verifying the same documents.

Customs and Border Control commissioner Lilian Nyawanda says the platform will improve cargo visibility, reduce paperwork and processing times, while strengthening transparency and security in cross-border trade.

“The platform connects clearing agents, logistics providers, and government regulatory agencies within a single digital ecosystem, enabling the secure exchange of trade information across borders,” she said.

“This integration fosters seamless collaboration among stakeholders, improves cargo visibility, reduces paperwork and processing times, and enhances the efficiency, transparency, and security of cross-border trade.”

Currently, international cargo moving into Kenya passes through multiple organisations, including shipping lines, clearing agents, customs officers, port authorities, transporters, warehouses and regulators such as the Kenya Bureau of Standards, the Port Health Service and the Agriculture and Food Authority.

Although the majority of these agencies operate digital platforms, traders usually submit the same shipping documents several times because information is stored in separate systems that do not fully communicate with one another.

The fragmented process results in repeated document verification, delayed approvals, manual reconciliations and disputes over whether cargo information has been altered after submission.

Under the blockchain-powered system, information entered once will be securely shared across the supply chain, creating what KRA customs officials describe as a “paperless” trade ecosystem.

Unlike conventional databases, blockchain technology creates an electronic record in which every approved transaction is permanently recorded and time-stamped, making it difficult to alter without leaving a visible audit trail.

The system gives entities at the customs greater confidence that invoices and shipping documents have not been altered after submission, while sparing traders from repeatedly submitting the same paperwork to different agencies because all authorised users access the same trusted information.

The changes will begin next week with a new requirement for exporters shipping containerised cargo to Kenya to submit key documents electronically before their goods leave foreign ports.

Importers will from Monday be required to obtain an Advance Cargo Declaration (ACD) reference code through a new KRA digital platform before loading cargo destined for Kenyan ports. To get the code, exporters must upload a draft bill of lading, commercial invoice, freight invoice and export declaration. The ACD is a mandatory digital pre-arrival system requiring a 15-digit alphanumeric reference code for all containerised sea cargo destined for Kenyan ports before loading at the point of origin.

The new requirement will be the first operational step in KRA’s wider plan to build a blockchain-enabled digital trade corridor linking customs authorities, shipping companies, clearing agents, logistics firms and government regulators into a single electronic platform.

The declaration system is expected to give customs officials access to cargo information while shipments are still at the port of origin, allowing document verification, risk assessment and cargo profiling to begin at least five days before vessels dock at the Port of Mombasa.

The impending shift to a blockchain-powered platform will directly affect thousands of businesses involved in Kenya’s import and export industry, including manufacturers importing raw materials, retailers bringing in consumer goods, exporters shipping agricultural produce, freight forwarders, transport companies and warehouse operators.

The blockchain initiative forms part of the customs modernisation programme that also includes upgrading the Integrated Customs Management System (iCMS), introducing an eCustoms mobile application and deploying body-worn cameras to improve transparency during customs operations.

The authority says the digital reforms are intended to improve compliance, while making Kenya more competitive as a regional logistics hub.

The customs department collected 12.4 percent more in revenue in the year ended June to a record Sh988.8 billion, exceeding its target by 0.8 percent and extending its streak of annual revenue growth to five consecutive years.

Non-oil taxes increased 14.3 percent to Sh618.4 billion, growing faster than the 9.5 percent growth in oil-related taxes to Sh370.4 billion, suggesting stronger imports of manufactured goods, machinery and other non-fuel cargo.