NAIROBI, KENYA – The Kenya Revenue Authority (KRA) has announced a significant modernization of its customs procedures, mandating that all bank guarantees be processed exclusively through its Integrated Customs Management System (iCMS) starting Friday, December 1, 2025. This directive, confirmed in a public notice from the KRA Commissioner for Customs and Border Control on Wednesday, November 12, 2025, marks a pivotal step in the agency's ongoing efforts to digitize and streamline trade logistics in Kenya.

The transition to a fully digital system is intended to enhance efficiency, increase transparency, and reduce the risks associated with the manual, paper-based guarantee system currently in place. A bank guarantee is a critical financial tool in international trade, serving as a promise from a bank to cover any unpaid customs duties or taxes if a trader defaults. It allows importers and exporters to move goods—such as those held in bonded warehouses or in transit—before all customs dues are settled. By automating this process, the KRA aims to eliminate cumbersome paperwork, shorten processing times, and improve data integrity.

Implications for Kenyan and East African Trade

This digital shift is poised to have a substantial impact on the entire trade ecosystem, affecting importers, exporters, clearing agents, and financial institutions. The primary benefit, according to the KRA, will be the acceleration of cargo clearance. The iCMS platform, which has been progressively rolled out since 2019 to replace the older Simba system, is designed to reduce clearance times by up to 60%. This increased speed is expected to lower the cost of doing business, a long-standing objective for enhancing Kenya's competitiveness as the primary gateway to East Africa.

Furthermore, the system's integration capabilities are crucial for regional trade. The iCMS can interface with the customs systems of other East African Community (EAC) member states, such as the ASYCUDA system used by Uganda, Rwanda, and others. This interoperability allows for real-time tracking of cargo from the Port of Mombasa to landlocked countries, a feature that strengthens supply chain security and facilitates smoother cross-border commerce.

Transition and Stakeholder Preparedness

The KRA has urged all trade stakeholders to adapt to the new requirement by ensuring all future bank guarantees are processed through the iCMS portal. To support this transition, the authority has assured users of technical guidance and has provided contact details for its support centers. The move is part of a broader national strategy to digitize the logistics sector, an initiative also championed by industry bodies like the Kenya International Freight and Warehousing Association (KIFWA). In October 2025, KIFWA announced a KSh 12 billion partnership to develop a centralized digital platform that will integrate with KRA and other trade agencies.

The current manual process involves multiple steps, including formal written applications and physical processing of guarantee documents, which are susceptible to delays and fraudulent activity. The new end-to-end digital process within iCMS will cover the application, approval, and management of the guarantee, creating a more secure and auditable trail.

While the official directive from the KRA is clear, Streamline News has noted a single, uncorroborated report from an online publication dated Thursday, November 13, 2025, claiming the digitalization plan has been reversed due to concerns over digital infrastructure readiness. However, this report has not been confirmed by the KRA or any other major media outlets as of Friday, November 14, 2025. The official KRA notice mandating the switch remains in effect. FURTHER INVESTIGATION REQUIRED.

A Broader Push for Digital Transformation

The automation of bank guarantees is a component of a larger technological overhaul at the KRA. In July 2025, KRA Commissioner General Humphrey Wattanga announced plans for a major upgrade to the iCMS during the 2025/2026 financial year and confirmed the agency is exploring the use of Artificial Intelligence (AI) to further modernize customs operations. This aligns with the government's wider agenda to digitize services to boost efficiency and revenue collection. This initiative also complements other recent KRA measures, such as the rollout of an Automated Payment Plan (APP) in November 2025 to help taxpayers settle liabilities in installments.

As the December 1, 2025 deadline approaches, the focus for thousands of businesses across Kenya and the region will be on ensuring their systems and personnel are prepared for a fully digital customs security process, a change that promises to reshape the landscape of East African trade.