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The Regional Logistics Sector Backs UCR Fee Cut, Urges Regional Alignment to Boost Export Competitiveness

As the regional apex body for freight forwarders in Eastern Africa, FEAFFA emphasized the need for harmonized systems, mutual recognition of certificates, and stronger collaboration among EAC member states to eliminate non-tariff barriers and unlock regional trade opportunities.

May 27, 2025
in News, Trade Updates
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Mr. John Mathenge, Technical Advisor, FEAFFA Board during KenTrade-KIFWA Stakeholder Engagement Forum in Nairobi

Mr. John Mathenge, Technical Advisor, FEAFFA Board during KenTrade-KIFWA Stakeholder Engagement Forum in Nairobi

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The Federation of East African Freight Forwarders Associations (FEAFFA) has welcomed the proposed 50% reduction in the USD 10 Unique Consignment Reference (UCR) fee per Import Declaration Form (IDF), calling it a timely intervention to ease the cost of doing business and improve the region’s trade competitiveness.

Speaking during a stakeholder engagement forum held on May 22, 2025, in Nairobi—co-hosted by the Kenya Trade Network Agency (KENTRADE) and the Kenya International Freight and Warehousing Association (KIFWA)—FEAFFA’s Technical Advisor to the Board, Mr. John Mathenge, commended KENTRADE for leading the initiative.

“This reduction will significantly lower the cost of exporting goods from Kenya. We urge other EAC partner states to emulate this example to help spur export growth and boost regional trade,” he said.

As the regional apex body for freight forwarders in Eastern Africa, FEAFFA emphasized the need for harmonized systems, mutual recognition of certificates, and stronger collaboration among EAC member states to eliminate non-tariff barriers and unlock regional trade opportunities.

The UCR fee cut proposal was unveiled by KENTRADE CEO, Mr. David Ngarama, who also introduced the draft National Electronic Single Window System (Fee Reduction and Exemption) Regulations, developed in partnership with the National Treasury. The proposed framework, which maintains existing exemptions, is expected to benefit key export sectors such as flowers, avocados, and fresh produce industries often impacted by rising logistics costs.

“This initiative directly responds to stakeholder concerns and aligns with broader efforts to promote trade facilitation and ease of doing business,” noted Mr. Ngarama.

KIFWA National Chairman, Mr. Fredrick Aloo, affirmed the association’s strong support for the UCR fee reduction, citing its potential to make Kenyan goods more competitive globally. He reiterated calls for expedited enactment of both the proposed regulations and the long-pending Kenya Customs and Freight Forwarding Management Bill, which seeks to professionalize the industry further.

The forum brought together key Partner Government Agencies (PGAs), including the Kenya Revenue Authority (KRA), Kenya Bureau of Standards (KEBS), Kenya Ports Authority (KPA), Anti-Counterfeit Authority (ACA), NACADA, the Civil Aviation Authority, and E-Citizen. Discussions focused on improving cargo clearance, enhancing inter-agency collaboration, and resolving operational challenges.

Participants also discussed the benefits of the upgraded National Electronic Single Window System—now operating as the Trade Facilitation Platform (TFP). With over 20,500 users and integration of more than 40 PGAs, the system processes roughly 4,000 permits daily, with over 70% cleared within 24 hours. These improvements are key to reducing delays, particularly for SMEs.

However, concerns were raised about system downtimes, delays in permit approvals—especially from the Pharmacy and Poisons Board—and the need for functionality improvements like bulk UCR approvals. Better system integration between KRA and KENTRADE was also highlighted.

The forum concluded with a call for the private sector to commission research to identify compliance challenges and provide evidence-based input to inform government interventions.

As the region moves toward deeper trade integration, such reforms demonstrate the critical role of collaboration and digital innovation in making East African logistics more efficient, competitive, and inclusive.

The article was published by Andrew Onionga, the Communications and Advocacy Officer at the Federation of East African Freight Forwarders Associations (FEAFFA), and can be reached via onionga@feaffa.com / oniongaam@gmail.com Tel: +254733780240

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Freight Logistics Magazine is FEAFFA's quarterly publication that provides readers with information on the key industry trends and issues in East Africa.
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