Agency says it's upgrading IT system, not buying new one

A National Treasury agency managing cross-border trade has denied plans to abandon a Sh1 billion system in favour of a new one.

Kenya Trade Network Agency said it was merely seeking to upgrade its National Electronic Single Window System before its expiry next year. 

Kentrade said the system was commissioned in 2013 and had a lifespan of seven years. 

“As per best practices, systems require technological refreshment after being in use for around seven years,” Kentrade chief executive officer Amos Wangora told the Star.

"The contracting process is ongoing and is under review by the Attorney General’s office."

He said the cost of upgrading the system will be catered for in the annual maintenance fee payable by Kentrade as agreed.

This followed claims Kenyans could lose hundreds of millions of shillings should the agency proceed with what has been seen as a bid to acquire yet another IT system from a Singapore-based technology firm.

There have been reports Kentrade is in the process of single-sourcing the IT system, despite there being another one from Singapore Corporation Enterprise, in what is disguised as a system upgrade.

Kentrade is said to have been in the process of procuring the system, which insiders claimed has the potential of rendering the existing one obsolete.

Kenya TradeNet System is the trademark name of the system managed by Kentrade. 

It was launched in October 2013 as a trade facilitation tool for parties in international trade to submit regulatory import and export-related papers through a single platform.

The system was developed and implemented by CrimsonLogic, the agents of the Singapore firm. 

A separate contract between CrimsonLogic and Kentrade to support and maintain the system at Sh100 million was signed in October 2016 but expired last July.

This means taxpayers have paid at least Sh300 million to keep the system running in the last three years, an amount other regional countries allegedly spent to acquire the whole system that cost Kenyans Sh1 billion.

It has been revealed that Ketrade management includes CrimsonLogic IT gurus as part of its internal experts. The experts form a task force meant to recommend remedies for shortcomings. 

Wangora formed the task force on March 14, 2017, to review the existing technology and recommend ways of addressing support challenges identified during the implementation period.

He picked six IT experts at Kentrade but the final report lists six other experts from CrimsonLogic, which made a presentation during committee meetings on how it would address the challenges.

CrimsonLogic recommended Kentrade procure another technology called Trade Facilitation Platform, which it argued would be less disruptive to the existing system.

The committee noted that the agency should go into a more competitive contract that would facilitate capacity building for maintenance of the system upon expiry of the current contract.

“The current contractual framework does not cater to the agency to build capacity for self-maintenance of the system," the report reads. 

CrimsonLogic did not respond to inquiries from the Star.

Kentrade chairman Suleiman Shabhal said he was aware of the intended upgrade but denied the agency was facing questions from key state offices concerned with procurement and legal matters.

“There is nothing peculiar. It is the nature of IT systems [to be] upgraded regularly, just like your laptop or phone. In this case, the Kentrade system was designed by CrimsonLogic. If we want an upgrade, it is only logical we go to CrimsonLogic," he said.

"You can't go to Oracle whereas you are using Microsoft system."

Shabhal dismissed claims the system is of no value as most imports and exports are handled by KRA's Integrated Cargo Management System.

(Edited by R.Wamochie)