Deal Signed to Launch New UK Kenya Digital Trade Corridor

TradeMark East Africa (TMEA), and the Institute of Export and International Trade (IOE&IT) on 26th July at the Kenyan High Commission in London, signed a Memorandum of Understanding, which provides a framework for collaborating to implement a digital trade corridor between the UK and Kenya.

The initiative, the 'UK-Kenya Trade Logistics Information Pipeline' (TLIP), aims to eliminate paperwork and introduce much better visibility up and down supply chains that flow between Kenya and the UK. It will cut costs for Kenyan firms producing goods like green vegetables and cut flowers for export to the UK, reducing prices for UK consumers, importers and retailers. UK exporter will also be able to benefit from better access to one of Africa's fastest growing markets.

TLIP is the first digital trade corridor to be established between the UK and a developing country since the UK's exit from the European Union. Indeed, TLIP is strongly aligned with the Economic Partnership Agreement (EPA) signed at the end of last year between the UK and Kenya.

At its core, TLIP has three Engines:

• A 'Digital Engine', based on distributed ledger technology (DLT), will support trade transactions, manage cross border data flows, and ensure traceability and the tracking of goods.
• An 'Information Engine' will provide a consolidated one-stop-shop for market and regulatory information needed by suppliers and buyers, and other intermediaries.
• A 'Policy of Governance Engine' will support the development of supplementary frameworks such as innovating trade instruments, procedures and processes as well as developing digital standards within the supply chains.

Trade between the UK and Kenya has been growing, in both directions, for over two decades. It is believed that TLIP has the potential to further accelerate this growth through:

• A reduction in the administrative procedures and time to import and export by at least 30%
• A reduction in order turnaround times of up to 40%
• A reduction in compliance costs of 20%
• Reduced duplication, leading to a reduction of steps in in the trading process of as much as 50%

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