In a bid to tighten customs controls and curb tax evasion, Kenya and South Sudan have embarked on a cooperative campaign aimed at tracking and reducing the influx of smuggled goods across their borders.
The Kenya Revenue Authority (KRA) and the South Sudan Revenue Authority (SSRA) formalized their collaboration on Thursday, signing a memorandum of understanding (MoU) that enables both countries to support each other in customs administration.
KRA Commissioner General Humphrey Wattanga and SSRA’s Commissioner General Africano Mande Gedima, alongside SSRA board chairman Stephen Dau, underscored their commitment to monitor the 1.5 million tonnes of goods traded annually between the two nations. This partnership focuses on sharing resources, tracking contraband, and increasing efficiency to clamp down on smuggling activities that evade tax obligations in both countries. 
South Sudan introduced mandatory electronic tracking for all cargo entering the country two months ago. These electronic tags provide authorities with real-time information on the cargo’s value, destination, and contents, thus reducing the likelihood of goods being diverted.
In an August 13 notice, South Sudan’s Commissioner for Corporate Services, Dr. Daniel Kon Ater, announced the tagging requirement to stakeholders across Uganda, Kenya, and Tanzania. Since then, SSRA customs officials have been collaborating with customs enforcement officers across the region to enforce this requirement.
These electronic tags, which cost approximately $350 per shipment, supplement the existing Regional Electronic Cargo Tracking (RECT) system. However, traders have expressed concern over the additional expenses and even challenged the tagging mandate in court. Despite this opposition, the court upheld the policy, emphasizing its potential to deter smuggling and reduce tax losses.
With this enhanced cross-border partnership in place, Kenya and South Sudan are now set to improve revenue collection and prevent the financial drain caused by smuggling.
Will this joint effort deter smuggling and strengthen economic ties in the region? Share your thoughts below.
