Tech Firm Sues KRA Over Alleged Copycat Digital Cargo System

A technology firm has sued the Kenya Revenue Authority over the rollout of a digital cargo pre arrival declaration system. Greenworld Big Data Limited alleges that KRA copied key elements of its proprietary platform.

The company seeks urgent court orders to block implementation of the Advance Cargo Declaration platform from August 3. Alternatively it wants 30 per cent royalty on revenue, gains and cost savings generated by the system.

Greenworld says it presented the Advanced Cargo Information Declaration platform to KRA in 2023. The company claims senior officials received detailed module by module presentations including big data hub, manifest management and risk assessment tools.

The firm says KRA’s ACD system shares striking similarities with its ACID proposal. Both require pre shipment declarations, generate reference codes linked to bills of lading and aim to improve customs risk assessment while reducing revenue leakages.

Greenworld estimates its system could recover Sh826 billion lost annually through under declaration and generate additional revenue through accurate trade data. It also claims potential savings of more than Sh23 billion in technology costs.

The company engaged KRA through meetings, emails and presentations between March and August 2023. One key meeting at KRA headquarters on May 24 involved nine senior officials. Minutes reportedly described the presentation as highly impressive.

Communication stopped after the presentations. Greenworld says KRA neither licensed the technology nor provided compensation. The firm wrote to the then Cabinet Secretary seeking further engagement but received no response.

The legal dispute surfaced after KRA issued a public notice on July 14 announcing the ACD rollout for containerised cargo. The system requires a 15 digit alphanumeric reference code before loading at the port of origin.

Greenworld and its founder Jacob Munene filed the suit against KRA and the Cabinet Secretary for National Treasury. The plaintiffs argue the similarities extend to system architecture and operational features.

The case highlights tensions around intellectual property in government technology adoption. Customs digital systems play a critical role in trade facilitation and revenue collection at ports like Mombasa.

KRA has not yet filed responses in the court documents available at the time of reporting. The authority has previously shifted toward blockchain and other digital tools to cut cargo delays.

The suit could affect rollout timelines for the ACD platform. Importers, exporters, shipping agents and customs brokers are among stakeholders required to comply with the new system.

Property and construction sectors rely heavily on efficient cargo clearance for materials and equipment. Delays or disputes in digital systems can impact project timelines and costs on major infrastructure sites.

The court will examine evidence of presentations, system similarities and any agreements between the parties. Outcomes could set precedents for technology sharing between private firms and government agencies.