2.2020

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Browsing 2.2020 by Author "Dr. Ogaga, Bruce"

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    Determinants of Dry Port performance in Kenya : a case of the Internal Container Depot, NAIROBI
    (KESRA/Moi University, 2020) Okoyo, Brian Mokua; Dr. Ogaga, Bruce; Dr. Kemboi, Ambrose
    In view of the global outlook, the rising number of container throughput and traffic globally has affected the functionality of seaports necessitating the emergence of dry ports. Dry ports have become an essential medium for seaports to solve the problem of rapid changes in globalization with the need to fulfill economies of scale and scope in the international market. Since the introduction of dry ports, there has been a lot of considerations with concern to Inland Container Depots targeted at improving port operations with an aim of making global trade more efficient and effective to all stakeholders. This study looked at the factors used by Embakasi dry port in optimizing its purpose as a way of providing solution to trade facilitation and ensuring there is free flow of containers at the Seaport in Mombasa. In particular, the study interrogated the determinants of dry port performance with a view of improving revenue collection. The explanatory variables used in this research project were Information Communication Technology, infrastructure, capacity of personnel and stakeholder cooperation. Hypothesis were formulated so as to describe an unknown but a tentative answer to what the research considered ought to be the possible outcome of an existing problem. Theories covered in this research project were the stakeholder theory, institutional theory and the theory of agency. The research used explanatory research design. Data collected was primary data through an ordinal scale involving close-ended structured questionnaires. The target population of the study consisted of 838 participants in international trade comprising of senior managers of Kenya Revenue Authority (KRA) customs and border control department, clearing and forwarding agents, and senior managers of Kenya Ports Authority (KPA). Sample size of 271 participants was selected using stratified random sampling technique. Data was collected at the Internal Container Depot (ICD) Nairobi and KRA headquarters, Nairobi for the financial year 2018/2019. The study employed descriptive and inferential statistical analysis to determine the relationship between variables using Statistical Package for Social Scientists (SPSS). In particular, correlation analysis and multiple regression analysis were used. The results are presented in the form of tables, and figures. The results of the multiple regression analysis revealed that Information Communication Technology (β1=0.141, p<0.05), infrastructure (β2=0.565, p<0.05), capacity of personnel (β3=0.094, p<0.05) and stakeholder cooperation (β4= 0.22, p<0.05) had a significant and positive influence on the performance of the dry port as p-values of the respective variables were less than 0.05. The model summary results revealed that there was a 77.2% variation in the performance of the dry port due to changes in Information Communication Technology, infrastructure, capacity of personnel and stakeholder cooperation. The study therefore concluded that that Information Communication Technology, infrastructure, capacity of personnel and stakeholder cooperation had a positive and significant effect on the performance of dry port. Therefore, KRA should develop a policy that enhances infrastructural development within the dry port through the construction of better facilities and foster useful collaborations and linkages with other border agencies involved in the process of customs clearance. The research suggested that future studies can evaluate the political, economic, social, technological, environmental and legal factors determining the performance of a dry port.
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    Effect of systems automation on Customs revenue performance in Kenya
    (KESRA/Moi University, 2020) Omosa, Askah Moraa; Dr. Ogaga, Bruce; Dr. Cheboi, Yegon
    Customs mandate are revenue collection, border protection, collection of international trade statistics and trade facilitation (Ayuma, 2018). Collection of revenues has been used as the apex yardstick for measuring the performance of Kenya’s customs and border control department. In the year 2016/2017 and 2017/2018, KRA missed its target by 18.5 billion and 15 billion respectively. This shortfall in collection created a deficit in government project’s financing affecting performance of customs revenues. This study established the factors that affect the revenue performance of customs and border control department in Kenya in terms of actual revenue collection, trade facilitation and protection of the society. It focused on establishing the effect of Scanner technology, Cargo Tracking System and Integrated Custom Management (ICMS)on the revenue performance of the customs and border control department in Kenya. The general objective was to investigate the effects of systems automation on customs revenue performance in Kenya. The study had three independent variables which were Scanner technology, Cargo Tracking System and Integrated Custom Management (ICMS). This study was grounded by three theories: Technological Determinism Theory, General Systems theory and International Trade theory. The study adopted the explanatory research design A population of 902 clearing and forwarding companies and customs officers were used out of which a sample of 227 respondents was selected, through Taro Yamane sampling method. The study used both primary data by use of structured questionnaires and secondary data obtained from relevant materials which represent academic research, with the selected period being 2017 to 2019. Data was analyzed into descriptive statistics and inferential statistics by use of SPSS (20) and presented in tables, pie charts and cross tabulation. The data was equally tested for validity and reliability using the Cronbach Alpha Score as the test for reliability. Scanner technology (β1=0.451, p=0.00), Cargo Tracking Systems technology (β2=0.303, p=0.00) and ICMS technology (β3=0.204, p=0.00) was found to have significant effect on customs revenue performance in Kenya with a P value of less than 0.05 for all variables. The results also revealed that scanner technology, cargo tracking system and integrated customs management system caused a variation of 64.7% or (R2=0.652 and adjusted R 2 =0.647) on revenue performance. Findings of the study established that custom revenue performance in Kenya increased significantly after implementation of systems. As a result, regional trade activities were intensified and greater border control achieved. The Kenya Revenue Authority needs to ensure tighter enforcement measures other than implementation of systems such as scanners, Cargo Tracking Systems and ICMS. In conclusion systems automation comes with costs attributable to ICT infrastructure, synchronization hitches, training and security enhancements. Nevertheless, their implementation is important in achieving revenue growth and operational efficiencies. Regional synchronization of systems as with the Regional Cargo Tracking System allows data sharing and greater global competitiveness. Recommendations for further study was on the effects of Integrated Customs Management System on the operational performance in East Africa. Further suggestion for future research was on effects of Business Intelligence and Customs Oil Stocks Information Systems on customs performance.