Blog Archive

Thursday, May 12, 2011

KRA's Simba System is down!

In addition to the current problems Kenyans faces with the Fuel shortages caused due to possible corruption & ineptness at KPC, we have the problems at the inefficient KPRL.

Now... add KRA to the list of GoK entities who add to the problem!

http://www.nation.co.ke/business/news/Technical+glitch+paralyses+KRAs+tax+clearance+system/-/1006/1161276/-/q7m4x/-/index.html

Simba System is the online clearance/taxation system used by KRA. I support the move to an electronic platform but users complain it is no longer up to the task with frequent breakdowns & connectivity problems.

Simba is having problems. Again. So even when fuel importers want to clear products through Simba, they cannot do so!

For traders, however, they are likely to count losses as Ms Memo said KRA would not reimburse costs incurred during the period the system is down.

Sigh, so KRA messes up & the consumers have to pay???

What does this mean?
- Greater lead times to get fuel to the fuel stations!
- Increased costs for OMCs [since most fuel is traded on borrowed funds]
- Increased costs as fuel trucks wait longer to load.
- Possible stockouts leading to increased costs across the board.
- Reduced tax collection by KRA with some losses which cannot be recovered!

Solution: No short-term solutions but Simba needs to be replaced or strengthened. Let ICPAK, Stakeholders & ICT Board have input on how to improve the stability & abilities of Simba [or help choose its replacement].

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