By Benadeta Mwaura - Reporter
Kenya, July 31, 2026 - The Kenya Revenue Authority (KRA) is embracing blockchain technology as part of a broader strategy to modernise customs operations, reduce paperwork and accelerate cargo clearance at the Port of Mombasa and border entry points across the country.
The move marks one of the most ambitious attempts by a Kenyan government institution to integrate distributed ledger technology into public service delivery, as authorities seek to improve transparency, strengthen supply chain management and curb inefficiencies that have long plagued cargo handling operations.
At the centre of the transition is the proposed Trade Logistics Information Pipeline (TLIP), a blockchain-powered platform designed to provide real-time tracking of cargo movement while allowing importers, customs officials, port operators and logistics companies to access information through a single digital system.
The technology is expected to reduce reliance on paper documentation while creating an immutable digital record of transactions, making it more difficult to alter information, duplicate records or conceal irregularities.
The decision comes as KRA intensifies efforts to modernise customs administration following a record KSh988.8 billion in customs revenue collection during the 2025–2026 financial year. According to the authority, technology-driven reforms have played a significant role in improving efficiency and increasing compliance levels among importers and exporters.
KRA Commissioner for Customs and Border Control Lilian Nyawanda attributed the improved performance to ongoing investments in digital infrastructure.
"This historic performance demonstrates the effectiveness of our customs modernisation programme and our continued commitment to balancing trade facilitation with revenue mobilisation," she said.
Unlike conventional databases, blockchain technology stores information across multiple interconnected digital records, making it difficult to alter data without leaving an electronic trail. Each transaction becomes part of a permanent ledger that can be viewed by authorised parties across the supply chain.
The proposed system will enable customs officers, shipping lines, freight forwarders, transport companies and importers to track shipments in real time, reducing opportunities for delays caused by duplicated verification processes.
KRA officials believe the technology will also improve accountability by creating a comprehensive record of cargo movement from ports of origin to their final destinations.
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The authority has already introduced several technology-driven initiatives, including the e-Customs mobile application, upgraded cargo management systems and body-worn cameras for customs officers.
The latest initiative comes as businesses continue to complain about lengthy cargo clearance procedures and high logistical costs at the Port of Mombasa, East Africa's busiest maritime gateway. Delays often translate into higher storage charges, increased transportation costs and disruptions across supply chains.
To address these challenges, KRA and the Kenya Ports Authority (KPA) recently agreed to integrate their digital systems in an effort to eliminate duplicated procedures and streamline cargo handling operations.
KRA Commissioner-General Adan Mohamed and KPA Managing Director Captain William Ruto said closer collaboration between the two institutions would help improve efficiency while reducing the time required to process shipments.
Although blockchain technology has been widely embraced in financial services and international logistics networks, experts caution that successful implementation will depend on strong cybersecurity measures, reliable internet connectivity and the ability of different institutions to integrate their systems effectively.
The transition may also require importers, clearing agents and freight companies to invest in staff training and digital infrastructure to ensure seamless integration into the new ecosystem.
However, supporters argue that the long-term benefits could be substantial. Greater transparency, reduced paperwork, lower operating costs and faster cargo movement could strengthen Kenya's position as a regional trade and logistics hub.
As global trade increasingly shifts towards digital platforms, Kenya's latest move suggests that the country's customs system is preparing for a future in which paperwork is replaced by algorithms, stamps give way to digital signatures and cargo containers become as traceable as financial transactions.