1. Masters in Tax & Customs Administration

Permanent URI for this community

http://10.150.1.119/handle/123456789/2605

Browse

Now showing 1 - 20 of 49

Coordinated Border Management and trade facilitation at Namanga Border Post, Kenya
(KESRA/Moi University, 2021) Ondari, Catherine Moraa; Dr. Nekesa, Marion; Dr. Komen, Joyce
Trade facilitation at the Namanga border post is currently facing a number of challenges that result into delays of clearance of goods across the Kenya-Tanzania border. The situation often encourages increased smuggling of goods as traders try to use shortcuts to avoid government agencies’ bureaucracies that always cause losses to several businesses due to delayed movement of commodities across the border. All these challenges are associated with disjointed coordination of trading by different agencies involved. The purpose of this study was to establish the effect of coordinated border management on trade facilitation in Kenya, focusing on Namanga one-stop border point. Specific objectives of the study included: to establish the effect of cooperation among border agencies, coordination between border agencies, border collaboration challenges between border agencies, coexistence among border agencies, and the effect of communication among border agencies on trade facilitation at the Namanga border point. New Trade Theory and Export Base Theory were used in the study. The study adopted causal research design and a target population of 140 staff of border control agencies at Namanga Border Point. Census was used to include all of them in the study where primary data was collected using a structured questionnaire and analyzed using descriptive (frequencies & percentages) and inferential (multiple linear regression) data analysis methods. The study’s key findings indicated that a unit increase in cooperation among border agencies would lead to a 0.153 increase in Trade facilitation at Namanga Border Post (β1=0.153, p=0.008<0.05); a unit increase in for Coordination of border agencies would lead to a 0.246 increase in Trade facilitation at Namanga Border Post (β2=0.246, p=0.014<0.05); a unit increase in Collaboration between border agencies would lead to a 0.123 increase in Trade facilitation at Namanga Border Post (β3=0.123, p=0.03<0.05); a unit increase in Coexistence among border agencies would lead to a 0.232 increase in Trade facilitation at Namanga Border Post (β4=0.232, p=0.001<0.05); a unit increase in cooperation among border agencies would lead to a 0.331 increase in Trade facilitation at Namanga Border Post β5=0.331, p=0.000<0.05). The study concluded that coordinated border management has a significant effect on trade facilitation at Namanga border post. The study recommended that there is need for the government and other key stakeholders to adopt international standards and tools of trade, such as SAFE Framework of Standards and performance of Time Release Study (TRS), that will help the identify bottlenecks and the border and address them efficiently. The study suggested that a comparative study should be carried out on the effect of coordinated border management on trade facilitation in at least two border points. A study should also be conducted on how the government is addressing challenges of coordinated border management to improve trade facilitation
Coordinated Border Management and trade facilitation at Namanga Border Post, Kenya
(Kenya School of Revenue Administration_Moi University, 2021) Moraa, Ondari Catherine
Trade facilitation at the Namanga border post is currently facing a number of challenges that result in delays of the clearance of goods across the Kenya-Tanzania border. The situation often encourages increased smuggling of goods as traders try to use shortcuts to avoid government agencies’ bureaucracies that always cause losses to several businesses due to delayed movement of commodities across the border. All these challenges are associated with disjointed coordination of trading by different agencies involved. The purpose of this study was to establish the effect of coordinated border management on trade facilitation in Kenya, focusing on Namanga one-stop border point. Specific objectives of the study included: to establish the effect of cooperation among border agencies, coordination between border agencies, border collaboration challenges between border agencies, coexistence among border agencies, and the effect of communication among border agencies on trade facilitation at the Namanga border point. New Trade Theory and Export Base Theory were used in the study. The study adopted causal research design and a target population of 140 staff of border control agencies at Namanga Border Point. Census was used to include all of them in the study where primary data was collected using a structured questionnaire and analyzed using descriptive (frequencies & percentages) and inferential (multiple linear regression) data analysis methods. The study’s key findings indicated that a unit increase in cooperation among border agencies would lead to a 0.153 increase in Trade facilitation at Namanga Border Post (β1=0.153, p=0.008<0.05); a unit increase in for Coordination of border agencies would lead to a 0.246 increase in Trade facilitation at Namanga Border Post (β2=0.246, p=0.014<0.05); a unit increase in Collaboration between border agencies would lead to a 0.123 increase in Trade facilitation at Namanga Border Post (β3=0.123, p=0.03<0.05); a unit increase in Coexistence among border agencies would lead to a 0.232 increase in Trade facilitation at Namanga Border Post (β4=0.232, p=0.001<0.05); a unit increase in cooperation among border agencies would lead to a 0.331 increase in Trade facilitation at Namanga Border Post β5=0.331, p=0.000<0.05). The study concluded that coordinated border management has a significant effect on trade facilitation at Namanga border post. The study recommended that there is need for the government and other key stakeholders to adopt international standards and tools of trade, such as SAFE Framework of Standards and performance of Time Release Study (TRS), that will help the identify bottlenecks and the border and address them efficiently. The study suggested that a comparative study should be carried out on the effect of coordinated border management on trade facilitation in at least two border points. A study should also be conducted on how the government is addressing challenges of coordinated border management to improve trade facilitation.
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.
Determinants of Dry Port Performance in Kenya_A Case of the nternal Container Depot, Nairobi
(Kenya School of Revenue Administration_Moi University, 2021) Okoyo, Mokua Brian
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.
Determinants of implementation of the East African Community Rules Of Origin, 2015 in Kenya
(KESRA/Moi University, 2020) Waweru, Jeremiah Gichuhi; Dr. Gitau, Florence; Dr. Koske, Naomi
The East African Community (EAC) has taken steps forward by implementing a free trade area, customs union and a common market in its region. The implementation of the former requires the removal of all trade barriers in the intra-regional trade. The purpose of this study was to establish the determinants influencing the implementation of the EAC RoO, 2015 in Kenya. It was guided by three specific objectives namely; To establish the effect of Structure of the EAC RoO on the implementation of RoO, 2015 in Kenya; To evaluate the effect of capacity of customs personnel on the implementation of the EAC RoO, 2015 in Kenya; and To determine the effect of stakeholder awareness on the implementation of the EAC RoO, 2015 in Kenya. Customs union theory and theory of economic integration were used as anchor to this study. The customs union theory focuses more on the welfare gains and losses that go after the structuring of customs union while theory of economic integration assumes perfect competition, and whose major concern is the location of production of different kinds of goods. The study adopted explanatory research design and covered the following agencies involved in the implementation of Rules of Origin 2015 in Kenya; Kenya International Freight Forwarders and Warehouses’ Association (KIFFWA), Members of the Kenya Association of Manufacturers (KAM) and Kenya Revenue Authority. Staff in supervisory and management positions in the three agencies were the focus of the study. There are approximately 165managers in the three agencies that were all studied since the study used census methodology. Federation of East African Freight Forwarders Associations (FEAFFA) was used for pilot testing thus was not included in the final data collection and analysis. It relied on primary data which was collected through a structured questionnaire. Quantitative data was analysed using descriptive and inferential statistics and results presented using figures and tables for easy understanding and interpretation. The study findings indicated that structure of the EAC RoO, capacity of customs officials and stakeholder awareness were key determinants of implementation of RoO, 2015 in Kenya. Regression results showed that 53.9% of the variations in implementation of 2015 East African Community Rules of Origin in Kenya are jointly accounted for by the variations in structure of the EAC RoO, capacity of customs officials and stakeholder awareness. The study concluded that there was improved implementation of EAC Rules of Origin, 2015in Kenya which was associated with effectiveness of critical success factors hence successful implementation. It also concluded that the structure of the EAC RoO, capacity of customs officials and stakeholder awareness had a positive influence on the implementation of EAC Rules of Origin, 2015in Kenya. The study recommends that that there is a need to sensitize and empower users at border stations and other stakeholders about the changes in procedures that have been brought by the implementation of Rules of Origin. The implementers; Kenya Customs also ought to set practical implementation objectives with regards to timeframes, the clarity of their action plans and the allocation of resources both human and financial. It also recommends that stakeholders should be included in all pre-implementation and inception phases as well in the execution of agreed upon strategies. This will increase the acceptability, and create a bridging social investment for the strategy implementation, as well as enriching the process with more ideas.
Determinants of Implementation of the East African Community Rules of Origin, 2015 in Kenya
(Kenya School of Revenue Administration_Moi University, 2021) Waweru, Jeremiah Gichuhi
The East African Community (EAC) has taken steps forward by implementing a free trade area, customs union, and a common market in its region. The implementation of the former requires the removal of all trade barriers in intra-regional trade. The purpose of this study was to establish the determinants influencing the implementation of the EAC RoO, in 2015 in Kenya. It was guided by three specific objectives namely; To establish the effect of the Structure of the EAC RoO on the implementation of RoO, 2015 in Kenya; To evaluate the effect of the capacity of customs personnel on the implementation of the EAC RoO, 2015 in Kenya; and to determine the effect of stakeholder awareness on the implementation of the EAC RoO, 2015 in Kenya. Customs union theory and the theory of economic integration were used as anchors to this study. The customs union theory focuses more on the welfare gains and losses that go after the structuring of the customs union while the theory of economic integration assumes perfect competition, and whose major concern is the location of production of different kinds of goods. The study adopted an explanatory research design and covered the following agencies involved in the implementation of Rules of Origin 2015 in Kenya; Kenya International Freight Forwarders and Warehouses’ Association (KIFFWA), Members of the Kenya Association of Manufacturers (KAM) and Kenya Revenue Authority. Staff in supervisory and management positions in the three agencies were the focus of the study. There are approximately 165 managers in the three agencies that were all studied since the study used census methodology. The Federation of East African Freight Forwarders Associations (FEAFFA) was used for pilot testing and thus was not included in the final data collection and analysis. It relied on primary data which was collected through a structured questionnaire. Quantitative data were analyzed using descriptive and inferential statistics and results were presented using figures and tables for easy understanding and interpretation. The study findings indicated that the structure of the EAC RoO, the capacity of customs officials, and stakeholder awareness were key determinants of the implementation of RoO, in 2015 in Kenya. Regression results showed that 53.9% of the variations in the implementation of the 2015 East African Community Rules of Origin in Kenya are jointly accounted for by the variations in the structure of the EAC RoO, the capacity of customs officials, and stakeholder awareness. The study concluded that there was improved implementation of EAC Rules of Origin, 2015in Kenya which was associated with the effectiveness of critical success factors hence successful implementation. It also concluded that the structure of the EAC RoO, the capacity of customs officials, and stakeholder awareness had a positive influence on the implementation of the EAC Rules of Origin, 2015in Kenya. The study recommends that there is a need to sensitize and empower users at border stations and other stakeholders about the changes in procedures that have been brought about by the implementation of Rules of Origin. The implementers; Kenya Customs also ought to set practical implementation objectives with regard to timeframes, the clarity of their action plans, and the allocation of resources both human and financial. It also recommends that stakeholders should be included in all pre-implementation and inception phases as well in the execution of agreed-upon strategies. This will increase the acceptability, and create a bridging social investment for the strategy implementation, as well as enrich the process with more ideas.
Effect of adoption of Electric Cargo Tracking System on Excise Revenue Collection in Kenya A case of Jomo Kenyatta International Airport
(Kenya School of Revenue Administration_Moi University, 2021) Adago, Zedekiah Ochieng
Over the years, Kenya Revenue Authority has implemented reforms and modernization programs geared towards positioning it as an efficient modern tax administrator. Despite the positive developments, KRA has continued to miss revenue targets partly attributed to taxpayer’s noncompliance and inefficiencies in revenue management systems. To mitigate lack of adequate revenues, Ministry of Finance has continuously revised up its fiscal deficit on a number of occasions. Electronic Cargo Tracking System is a modern computer-based assessment system that was introduced by the Kenya Revenue Authority Customs department, to monitor cargo and improve revenue collection. The study aimed to determine the effect of adoption of electronic cargo tracking system (ECTS) on excise revenue collection in Kenya - a case of Jomo Kenyatta International Airport (JKIA) as an entry and exit point. The study was guided by the following specific objectives; to determine how cargo monitoring affects excise revenue collection at JKIA in Kenya; to investigate whether Information Sharing affects excise revenue collection at JKIA in Kenya; to establish if cargo Security has effectively contributed to excise revenue collection at JKIA in Kenya. The study adopted explanatory research design. The target population comprised of 300 Customs and technical staff of Kenya Revenue Authority stationed at JKIA Customs department. Stratified random sampling was used to identify the population which was Customs and technical officers assigned to ECTS. Modern portfolio theory, Diffusion of innovation theory, Technological determinism theory, Infusion theory of technology and Technological acceptance model are the theoretical frameworks that guided the study. The study employed primary data collection by closed ended structured questionnaire using five-point Likert scale. The findings of the Multiple regression analysis revealed that Cargo Monitoring positively and significantly influenced Excise Revenue Collection (β1=0.221, p=0.003): Cargo Security positively and significantly influenced Excise Revenue Collection (β2=0.334, p=0.000); Information Sharing positively and significantly influenced Excise Revenue Collection (β2=0.357, p=0.000). Therefore, the study concluded that adoption of Electronic Cargo Tracking System (ECTS) has had significant effect on Excise Revenue Collection in Kenya, as shown by the increase in excise revenue from Sh. 80 billion in 2010 to 165 billion in 2018. From the results, the study recommends that Kenya Revenue Authority should fully strengthen Cargo Monitoring, Cargo Security and Information Sharing in order to realize additional Excise Revenue Collection at JKIA. The study suggests that future research can evaluate other factors that affect Excise Revenue Collection at JKIA.
Effect of adoption of Electronic Cargo Tracking System on Excise Revenue collection in Kenya: a case of Jomo Kenyatta International Airport
(KESRA/Moi University, 2021) Odago, Zedekiah Ochieng; Dr. Bonuke, Ronald; Dr. Nekesa, Marion
Over the years, Kenya Revenue Authority has implemented reforms and modernization programs geared towards positioning it as an efficient modern tax administrator. Despite the positive developments, KRA has continued to miss revenue targets partly attributed to taxpayer’s noncompliance and inefficiencies in revenue management systems. To mitigate lack of adequate revenues, Ministry of Finance has continuously revised up its fiscal deficit on a number of occasions. Electronic Cargo Tracking System is a modern computer-based assessment system that was introduced by the Kenya Revenue Authority Customs department, to monitor cargo and improve revenue collection. The study aimed to determine the effect of adoption of electronic cargo tracking system (ECTS) on excise revenue collection in Kenya - a case of Jomo Kenyatta International Airport (JKIA) as an entry and exit point. The study was guided by the following specific objectives; to determine how cargo monitoring affects excise revenue collection at JKIA in Kenya; to investigate whether Information Sharing affects excise revenue collection at JKIA in Kenya; to establish if cargo Security has effectively contributed to excise revenue collection at JKIA in Kenya. The study adopted explanatory research design. The target population comprised of 300 Customs and technical staff of Kenya Revenue Authority stationed at JKIA Customs department. Stratified random sampling was used to identify the population which was Customs and technical officers assigned to ECTS. Modern portfolio theory, Diffusion of innovation theory, Technological determinism theory, Infusion theory of technology and Technological acceptance model are the theoretical frameworks that guided the study. The study employed primary data collection by closed ended structured questionnaire using five-point Likert scale. The findings of the Multiple regression analysis revealed that Cargo Monitoring positively and significantly influenced Excise Revenue Collection (β1=0.221, p=0.003): Cargo Security positively and significantly influenced Excise Revenue Collection (β2=0.334, p=0.000); Information Sharing positively and significantly influenced Excise Revenue Collection (β2=0.357, p=0.000). Therefore, the study concluded that adoption of Electronic Cargo Tracking System (ECTS) has had significant effect on Excise Revenue Collection in Kenya, as shown by the increase in excise revenue from Sh. 80 billion in 2010 to 165 billion in 2018. From the results, the study recommends that Kenya Revenue Authority should fully strengthen Cargo Monitoring, Cargo Security and Information Sharing in order to realize additional Excise Revenue Collection at JKIA. The study suggests that future research can evaluate other factors that affect Excise Revenue Collection at JKIA.
The Effect of Authorized Economic Operators Programme on Trade Facilitation in Kenya
(Unpublished Research Project, 2019-10) Wangari, Faith Theresa
Effect of Capacity Building on Trade Facilitation in Kenya : A Case of Kenya Revenue Authority, Customs and Border Control Department, Nairobi Region
(Unpublished Research Project, 2019) Njoroge, Ruth Wanjiru
Effect of Co-ordinated Border Management on Trade Facilitation Performance at Busia Border Station in Kenya
(KeSRA/Moi Unpublished Research Project, 2019-11) Otiato, Christ Abel
Effect of Coordination of Border Management Practices on Cargo Clearance Efficiency in Kenya; A Case of Key Border Stations in Kenya
(Kenya School of Revenue Administration_Moi University, 2021) Nganga, Edith Mutindi
Though the standard World Custom Organization clearance time is 3 days, the current clearance time in Kenya is 2 weeks or more which heightens the need for coordinated border management. Implementing coordinated border management strategies can reduce internal costs and inefficiencies, improve security, and increase their ability to facilitate trade and generate revenue at the border. However, despite the recognition of the importance of coordinated border management, the available studies are not conclusive on its effect on cargo clearance. The main objective of the study was to determine the effect of coordinated border management on cargo clearance in Kenya, a case of key border stations in Kenya. The specific objectives were to: establish the effect of coordinated flow of information between agencies, coordinated verification of goods and customs electronic procedures on cargo clearance at key border stations in Kenya. The study was anchored on three theories namely Theory of Constraints, Institutional Theory and System Theory. An explanatory research design was followed by the study targeting 445 employees and officials at four border stations in Kenya namely inland container depot in Nairobi and nonstop border posts at Namanga, Busia and Malaba. A sample size of 206 respondents was arrived at using Fischer formula. The study used primary data which was collected from the respondents using structured questionnaire and data analyzed using descriptive and inferential statistics. Statistical Package for Social Sciences computer software aided in the data analysis. Tables and graphs were used for presentation of findings. The study found out that Coordinated Flow of Information (r=0.118), Coordinated Verification of Goods (r=0.142) and Customs Electronic Procedures (r=0.287) have a positive effect on the cargo clearance at the border stations. The results of the regression analysis also showed that the CBM practices studied explain 53.1% of the variations in cargo clearance at the border stations (R2=0.531). From the hypothesis testing, Coordinated Flow of Information had a p value of 0.006, Coordinated Verification of Goods had a p value of 0.026 while Customs Electronic Procedures had a p value of 0.032 which shows that all the variables had a significant effect on cargo clearance (p<0.05). The study thus concludes that these CBM practices can severely enhance, hamper or interfere with the cargo clearing process at the border stations. The study recommends process reengineering at the border posts which will allow customs to streamline procedures, and as a result perform tactical and operational activities in a harmonized fashion. The study also recommends relevant policymakers and government agencies from partner states should work together to implement a more cost-effective CBM practices. The study further recommends that C&BC department of KRA should effectively integrate cargo clearance functions with ICT based systems through application of electronic cargo clearance methods.
Effect of Customs Administration Procedures on Trade Facilitation in Kenya
(KeSRA/Moi Unpublished Research Project, 2022) Wanjao, Lorraine
Trade facilitation contributes to economic growth and development among the trading partners by improving volume of trade and reducing costs of trade. Customs administrations find themselves increasingly under pressure from national governments and international organizations to facilitate the clearance of legitimate passengers and cargo. The general objective of the study was to investigate effect of customs administration procedures on trade facilitation in Kenya. The study was guided by the following specific objectives; to determine the effect of declaration of goods on trade facilitation, to establish the effect of documentation on trade facilitation, and to investigate the effect of verification of goods on trade facilitation in Kenya. The following theories were used to expound on the study; Resource-Based View Theory, Heckscher-Ohlin Theory, and New Trade Theory. The study used explanatory research design. Explanatory research design enables researchers to connect ideas to understand the cause and effect among variables. The population of this study consisted of customs officials whose total number is 200. Data was collected using a questionnaire based on the specific objectives. Diagnostic tests of both the independent and dependent variables were carried out to establish whether regression analysis test can be undertaken on them. The study adopted linear regressions analysis which indicates the influence of custom administration on trade facilitation performance in Kenya. The descriptive statistics of the study was presented through percentages, means, standard deviations out by the customs office and is an important part of customs procedures. The results indicated that declaration of goods had a positive and significant effect on trade facilitation (β = 0.416, p = 0.000); documentation had a positive and significant effect on trade facilitation (β = 0.200, p = 0.007); and verification of goods had a positive and significant effect on trade facilitation (β = 0.314, p = 0.000). From the study findings, the study concluded that customs administration procedures have a significant influence on trade facilitation in Kenya. The study recommended that Kenya Revenue Authority should enhance declaration of goods by ensuring that declaration of goods follows the international standards; should ensure accurate completion of required export documentation, comply with import/export documentation requirements and produce documents such as invoice for the goods; and should ensure thorough inspection of the goods, conduct complete inventory inspection and application of scanners in verification of goods. The study suggested that future studies could focus on customs administration procedures and trade facilitation in within the East African Community states for comparison purposes.
Effect of Customs Administration Strategies on cross border logistics efficiency in East Africa Member Countries ( A Case of Kenyan borders with Uganda and Tanzania
(KeSRA/Moi Unpublished Research Project, 2019-11) Kilonzi, Felix
The customs administration is one of the fundamental elements of the international business cycle. Developing an efficient cross border logistics has been a major challenge by East African countries. There has been frequent cases of delays, lack of leadership, low capacity and theft of cargo. The main purpose of the research study was to establish the effect of customs administration on cross border logistics efficiency among East African member states. The study was guided by four objectives: To determine the effect of custom harmonization on cross border logistics efficiency at the Kenyan borders. To evaluate the effect of customs automation on cross border logistics efficiency at the Kenyan borders. To assess the effect of customs cross-border management on cross border logistics efficiency at the Kenyan borders. To evaluate the effect of capacity improvement on cross border logistics efficiency at the Kenyan borders. The study was guided by three theories namely; Theory of Customs Union, Theory of Economic Integration and Trade Theory. The study used an explanatory research design and the total population for the study was Uganda and Tanzania borders, These are; Holili, Isebania, Loitokitok, Lunga Lunga, Namanga, Taveta, Busia, Lokitanyala, Lwakhakh, Malaba and Suam. The study targeted 51 senior staff, 94 middle management staff and 141 junior staff. The sample size was 47 senior staff, 92 middle management staff and139 junior staff. Questionnaires were the major data collection instruments. The data was analyzed using descriptive and further inferential statistics including correlation and regression analysis. The findings show a strong and positive relationship between custom harmonization and cross border logistics efficiency. The relationship is significant (r = 0.330, p<0.01). There was a strong and positive relationship between custom automation and cross border logistics efficiency. The relationship was significant at (r = 0.296, p<0.01). There was a strong and positive relationship between cross-border management and cross border logistics efficiency. The relationship is significant at (r = 0.468, p<0.01). There was a very strong and positive relationship between capacity improvement and cross border logistics efficiency. The relationship is significant at (r = 0.329, p<0.01). The results of multiple regression analysis shows that the value of R 2 is 0.574, revealing 57.4% variability in factors relating to custom harmonization, custom automation, cross border management and capacity improvement accounted to cross border efficiency. This model implies that every per unit increase in custom harmonization leads to 0.193 increase in cross border logistics efficiency. An increase in custom automation leads to 0.096 increase in cross border efficiency. A unit increase in cross border management leads to 0.310 increases in cross border efficiency. A unit increase in capacity improvement leads to 0.225 increase in cross border logistics efficiency. The study concluded that there has been little improvement in cross border logistics efficiency. Automated coding system has greatly improved cross border logistics efficiency. Centralized customs among the member countries has made movement of goods more efficient.. The study recommended that member states should come up with a policy that reduces time of clearing goods by harmonizing the custom procedures. East Africa member states should improve on automated system to ensure that it identifies all goods passing through the border posts. EAC member states should come up with policies that eliminate gaps in sharing of information. East African member states should regularly train their staff on emerging trend in cross border logistics management.
Effect Of Customs Electronic Systems on Trade Facilitation at Key Entry Points (JKIA, ICD and Mombasa Port) in Kenya
(Kenya School of Revenue Administration_Moi University, 2021) Dere, Abdihakim
Despite reforms, trade procedures in Kenya remain lengthy, cumbersome, and costly. This has negatively impacted the competitiveness of Kenyan goods in the region. This study investigated the effect of customs electronic systems on trade facilitation at key entry points in Kenya. Specifically, the study sought to determine the effect of the Integrated Customs Management System on trade facilitation at key entry points in Kenya; establish the effect of the Electronic Cargo Tracking System on trade facilitation at key entry points in Kenya, and assess the effect of scanning technology on trade facilitation at key entry points in Kenya. The study was supported by the diffusion of innovation theory, technological determinism theory, and resource-based view theory. The explanatory research survey design was employed. The target population of the study was 147 Customs officials at JKIA, ICD, and Mombasa Port. Out of the 147 questionnaires distributed, 143 were filled and returned resulting in the response rate of 97.27%. The data collected was analyzed using descriptive and inferential statistics. Descriptive findings were presented in the form of averages, standard deviations, counts, and percentages. Inferential statistics relied on the use of correlation and regression analyses. The study findings indicated that the Integrated Customs Management System had a positive and significant effect on trade Facilitation at key entry points in Kenya (β1=0.230, p=0.02<0.05). Electronic Cargo Tracking System had a positive and significant effect on Trade Facilitation at key entry points in Kenya (β2=0.153, p=0.028<0.05). Likewise Scanning technology had a positive and significant effect on Trade Facilitation at key entry points in Kenya (β3=0.506, p=0.000<0.05). The study concluded that Customs Electronic Systems play a fundamental role in explaining changes in trade facilitation in Kenya. The study recommended that the management of key entry points should continue encouraging the use of customs electronic systems in daily operations. The management should organize regular training workshops aimed at equipping employees with the necessary skills to handle customs electronic systems. The government of Kenya should allocate enough financial resources to boost the development and maintenance of the customs electronic systems. Future researchers could introduce intervening or moderating variables in the model and establish their role in determining the relationship between customs electronic systems and trade facilitation. Some of these factors could include government regulations, organizational culture, and technological capabilities.
Effect of Customs Modernization Initiatives on Customs Performance at Key one Stop Border Posts in Kenya
(Kenya School of Revenue Administration_Moi University, 2021) Oyieke, King
In light of modernization initiatives that have been implemented by the Kenya Revenue Authority (KRA), the current study sought to find out the effect of these initiatives on customs performance at key One-Stop Border Posts (OSBP’s) i.e. Malaba, Busia, Namanga and Lunga Lunga. Specifically, the study looked at how Customs Modernization initiatives such as Co-ordinated Border Management, System Automation, and Human Resource Development have affected customs performance at the border posts. The study was guided by the Technology Acceptance Theory and the Resource Based View Theory. The study adopted a descriptive survey design with primary data being used in the analysis. Primary data was collected through a structured self-administered questionnaire targeting customs officers and clearing agents who formed the target population of the study. The key OSBP’s formed the sampling frame of the study from where a sample of the clearing agents and customs officers, was drawn for purposes of administering the questionnaire. The population was 163 customs officers and clearing agents, while the sample size was 116. A pilot study was conducted in Malaba OSBP to test the reliability of the research instruments that were used for the study. A Cronbach alpha reliability coefficient of 0.7 was used as the threshold for accepting the reliability of the questionnaire. The questionnaire was found to be reliable with a Cronbach alpha score of 0.869. The collected data was analyzed using SPSS. Multivariate Regression Analysis was carried out to specify the estimation model and determine the type of relationship that exists between the independent variables and the dependent variable. The study findings indicated that systems automation (β2 = 0.358, p = 0.000<0.05); and human resource development (β3= 0.179, p =0.022<0.05) had a positive and significant effect on customs performance. However, coordinated border management did not have a significant effect on customs performance (β1 = 0.051, p =0.579>0.05), and as such, the null hypothesis was not rejected. To test the overall statistical significance of the model, analysis of variance (ANOVA) was used. The ANOVA results showed that the model was statistically significant. This was supported by a reported p-value less than the predetermined alpha value (p=0.000<0.05) and an F Statistic which was greater than the F Critical value (F = 17.36>2.71) at (3, 84) degrees of freedom. The results confirmed that Systems automation and Human Resource Development were statistically significant in explaining customs performance at the OSBP’s. The R2 of the regression model was established to be 0.383 (R2 = 0.389). The study concluded that systems automation and human resource development contribute significantly to customs performance. Based on the findings, the study recommended that KRA should explore the technology field of Artificial Intelligence (AI) as there are many potential benefits associated with this area of systems automation. The study also recommended the establishment of a reward and motivation system to boost the morale of customs staff as well as enhancing the staff establishment at the border posts, as part of further strengthening human resource development at the border posts and enhancing service delivery
Effect of Customs Operations on the Growth of Cross-border Trade in Kenya
(Kenya School of Revenue Administration_Moi University, 2021) Sande, Shiphrah
In Kenya, the volume of cross-border trade has been declining. The country's current account deficit increased by 10.2% in Q1 2020, to Ksh 110.9 billion from Ksh 100.6 billion in Q1 2019. The goal of this research was to see how customs operations affected the growth of cross-border trade in Kenya. The study's main goal was to see how trade facilitation, border coordination management, and risk management affected cross border trade in Kenya. The study is guided by the gravity, monopolistic trade and new trade theories. The explanatory research design was considered in analyzing the effects of customs operations on cross border trade in Kenya. The target population of this study was 4117 customs administration officers working at Kenya revenue authority. The sample size for the research was 364 officials selected using stratified random sampling technique. Structured questionnaires were used to collect primary data. Descriptive and inferential statistics were used to analyze the data. To determine the effect of independent variables on the dependent variable, the researchers used multiple regression analysis. The findings revealed that trade facilitation had a positive and significant effect of growth of cross-border trade (β= 0.379, p=0.000). Border Coordination and Management had a positive and significant effect of growth of cross border trade (β= 0.313, p=0.000). Risk management had a positive and significant effect of growth of cross-border trade (β= 0.13, p=0.049). The conclusion of the study is that customs operations have significant contribution to growth of Cross-Border Trade in Kenya. The study further concluded that trade facilitation, border coordination and management and risk management positively and significantly influence growth of Cross-Border Trade in Kenya. The study recommended that management of Kenya Revenue Authority should ensure review of the aspects relating to trade facilitation including trade barriers, system integration, complexity of customs clearance procedures and automation. The management should also review aspects relating to border coordination & management such as cooperation of different agencies, policies to promote international cooperation and multilateral mechanisms, efficient and secured border coordination and management, strategic partnership and efficient automation of border processes and procedures. Further, the management should review aspects relating to risk management including global approach to customs risk management, identification of risks, risk analysis, and risk evaluation. Furthermore, scholars should consider investigating variables that would influence the relationship between electronic customs systems and growth of Cross-Border Trade such as government policy and technology adoption.
Effect of Customs Reform Strategies on Customs Revenue Performance in Kenya : A Case of Embakasi Inland Container Depot
(KeSRA/Moi Unpublished Research Project, 2022) Khisa, Joram Fuchingo
The Customs and Border Control Department (CBCD) is one of the revenue departments within the Kenya Revenue Authority. Despite Kenya’s efforts in implementing custom reforms, customs and border control department has not been performing to the treasury’s expectations. The Kenya revenue authority therefore initiated various reforms in 2004/2005 with the objective of transforming Kenya Revenue Authority (KRA) into a modem, fully integrated and Client-focused organization, with enhanced revenue performance. These reforms were necessitated by Kenya’s customs revenue 0.84 percent annual decline over 1996-2005 period as affirmed by Moye and Ronge (2006). The study sought to examine the effect of customs reform strategies on customs revenue performance in Kenya, focusing on Embakasi Inland Container Depot (ICD) station, Nairobi County. In particular, the study interrogated the effect of information technology, capacity building, coordinated border management initiatives and customs processes/procedures reform strategies on customs revenue performance at ICD Embakasi. The study was anchored on two theories: technology acceptance model and porter’s theory of competitive advantage theories. The study adopted a descriptive research design. The target population was drawn from key international trade players, importers, exporters, transporters, clearing and forwarding agents, and staff from KRA’s customs department working at the Embakasi Inland Container Depot. Target population comprised of 351 stakeholders who participated in international trade at ICD Embakasi. The applied sampling technique was stratified random sampling that led to the selection of 187 respondents to from the study sample. Primary data was collected using a self-administered structured questionnaire on a 5-point Likert scale. Quantitative analysis was employed using the procedures within the Statistical package for social sciences (SPSS). Data was analysed using descriptive statistics, correlation and multiple regression analysis at 95% confidence level. The study findings found a strong positive correlation, as evidenced by an R-value of 0.75, between customs reform and customs revenue performance at ICD Embakasi-Kenya. The results also uncovered a statistically significant relationship between the information technology, capacity building, coordinated border management initiatives reform strategies and customs revenue performance at ICD Embakasi, as portrayed by p-values of 0.016, 0.029, and 0.005 <0.05. However, the research found no statistically significant relationship between the customs processes and procedures reform strategy and customs revenue performance as shown by a p value of 0.179 >0.05. Therefore, the study concluded that the information technology, capacity building, coordinated border management initiatives reform strategies had a significant effect on customs revenue performance at ICD Embakasi-Kenya. The study recommends adopting a post-clearance audit policy linked to the customs processes and procedures reform strategy for export and import clearance controls at ICD Embakasi. The study also recommends the need of formulating a risk management procedure outlining the essential risk assessment, treatment, consultation, communication and recording, and review and monitoring for improved customs revenue performance. The system should also stress the importance of proactive data collation, collection, and dissemination throughout the organization.
Effect of Customs Tariffs of the Financial Performance of Textile and Apparel Firms in Kenya : Case of Textile and Apparel Operators in Nairobi, Machakos and Mombasa
(Unpublished Research Project, 2019-11) Bukachi, Felix Nicholas
Effect of Dry Port Operational Factors on Trade Facilitation in Kenya
(Kenya School of Revenue Administration_Moi University, 2021) Gichuhi, Irene
In light of the global perspective, the main aim of establishing a Dry Port is to decongest the main seaport and facilitate trade by reducing trade costs and clearance time. However, the benefits that come with dry ports have not been fully realized with many stakeholders who engage with the ICDs complaining of high transaction costs and lengthy clearance times. These are against the tenets of trade facilitation. This study sought to evaluate the effect of port operational factors on trade facilitation in Kenya. The focus of the study was Nairobi Inland Container Depot. The specific objective of the study was to interrogate the effect of infrastructure development, the capacity of personnel, customs automation, and interagency coordination on trade facilitation at Nairobi ICD. The Queuing Theory, Stakeholder Theory, Systems Theory, Dynamic Capability Theory, and The New Trade Theory are the theoretical framework that guided the study. The study adopted an explanatory research design. The target population of the study consisted of 351 stakeholders in international trade comprising KRA customs staff, exporters, importers, transporters, and clearing agents. The study used primary data and adopted stratified random sampling to select the sample size of I87 participants. Primary data was collected through the use of closed-ended structured questionnaires. The study employed descriptive statistics in the form of frequencies, means, and standard deviations and inferential statistics in the form of correlation and multiple regression analysis to evaluate the relationship between the variables of the study. From the findings of the multiple regression analysis, it was established that a unit change in Infrastructure Development would lead to a 0.381 increase in Trade Facilitation at Nairobi ICD as shown by (β1=0.381, p=0.000); a unit change in Capacity of Personnel would lead to a 0.210 increase in Trade Facilitation at Nairobi ICD as shown by (β2=0.210, p=0.001); a unit change in Customs Automation would lead to a 0.196 increase in Trade Facilitation at Nairobi ICD as shown by (β3=0.196, p=0.001); a unit change in Interagency Coordination would lead to a 0.248 increase in Trade Facilitation at Nairobi ICD as shown by (β4=0.248, p=0.000). Therefore, the study concluded that Port operational factors have a significant influence on trade facilitation in Kenya. The study recommended that infrastructure development, the capacity of personnel, Customs automation, and interagency coordination should continuously be enhanced to increase trade facilitation in Kenya. The study suggested that future studies can evaluate other factors that influence trade facilitation in Kenya.