2. Post Graduate Diploma

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Challenges Facing the Implementation of One Stop Border Posts by The Kenya Revenue Authority
(KESRA/JKUAT - Unpublished research project, 2018) Temba, Grace Lunyolo
Changing from two-control stops to a Joint Border Post, in full compliance with the regulatory requirements of the neighboring countries, will clearly improve and enhance intraregional trade in Africa. Nonetheless, despite the benefits accrued to it, the implementation of one stop border posts is facing numerous challenges. The purpose of this study was to investigate the challenges facing the implementation of one stop border posts by the Kenya Revenue Authority. The specific objectives were to determine the effect of infrastructural challenges, bureaucratic procurement procedures, organizational culture and human resource challenges affect the implementation of one stop border posts by the Kenya Revenue Authority. This study used a descriptive research design. The target population of this study was all the 120 staff working at the four one stop border posts: Busia border, Malaba border, Namanga border and Taveta/horiri border. The study will use 50% of the target population as the sample size. The study used stratified random sampling in the selection of the sample size. This study used both primary and secondary data. Secondary data was collected from the annual reports on the customers and control department in Kenya Revenue Authority. Primary data was collected by use semi-structured questionnaires. Qualitative data was collected analysed by use of thematic content analysis and the results were presented in a narrative form. Quantitative data was analyzed by use of both descriptive and inferential statistics by use of statistical package for social sciences (SPSS version 22). Descriptive statistics include frequency distribution, percentages, measures of central tendencies (mean) and measures of dispersion (standard deviation). The data was then presented in tables and graphs. Multivariate regression analysis was used to establish whether there is a relationship between the dependent and the independent variables. The study found that infrastructural challenges have a negative and significant effect on the implementation of one stop border posts by the KRA. The study also established that bureaucratic procurement procedures have a negative and significant effect on the implementation of one stop border posts by the KRA. Further the study found out that organizational culture has a positive and significant effect on the implementation of one stop border posts by the KRA. Furthermore, the results revealed that human resource challenges have a negative and significant effect on the implementation of the one stop border posts by the KRA. The study recommends that the management at the KRA should purchase more stand by generators, allocate more financial resources for the development of one stop border posts and adopt the use on modern or advanced technology so as to ensure successful implementation of one stop border posts. The study also recommends that the management at the KRA should improve on staffs as well as suppliers competencies through conducting regular seminars and offering of free tutorial training so as to improve on the staffs‘ competency skill thus improving on the implementation of one stop border posts by the KRA. In addition, the study recommends that the management at the KRA should change the working pattern among staffs and implement measures or policies that reduce long working hours among the employees. Moreover, the study recommends that the management should employee more competency staffs so as to enhance the implementation of one stop border posts. Further, the study recommends that the management at the KRA should solicit customer feedback, take stock of their resources, and practice schedule their resource so as to improve on the implementation of one stop border posts.
Coordinated Border Management and Trade Facilitation at Namanga Border, Kenya
(KESRA/JKUAT, 2022) Ogutu, Catherine Mogere
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 94 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 there were significant challenges on coordinated border management at the Namanga border point. The study recommended the government’s creation of a harmonized business environment, effective coordination mechanism, effective policy for enhanced interagency collaboration, appropriate border control agencies coexistence structures, and working communication mechanism for helping border control agencies to always work under a more professional and friendlier environment that is favourable to effective and efficient trade facilitation at the Namanga border point. The study was important for informing the government and other state agencies on how to improve trade facilitation through properly coordinated border management
Customs strategies in controlling smuggling of goods in Kenya
(KESRA/JKUAT - Unpublished research project, 2019) Odago, Oscar Okoth
The aim of this study was to determine the effectiveness of customs strategies in controlling smuggling of goods in Kenya. The study was guided by four specific objectives; effectiveness of physical border patrol, effectiveness of customs cooperation with other agencies, and effectiveness of one stop border post in controlling smuggling of goods in Kenya. The study was also guided by; routines activity theory, collaborative advantage theory, social impact theory and situational crime prevention theory. The study used a descriptive research design. The target population of this study was the customs staff at Namanga One Stop Border Post and Nairobi customs region. The study used stratified random sampling technique to determine a sample size of 214 respondents, which was 87.2% of the total 460 staff targeted. Simple random sampling was used to select respondents. The study employed a questionnaire to collect primary data. The questionnaire comprised of close-ended questions. The study generated qualitative data. Qualitative data was coded and entered into Statistical Packages for Social Scientists (SPSSVersion23) and analysed using descriptive statistics. Qualitative data was presented in form of tables. The study found that; Physical border patrol, Customs cooperation with other agencies and One stop border post as customs strategies had an effect in controlling smuggling of goods at Kenya borders. The study established that multiple agencies are required to work in harmony to complement the strategy since cooperation among agencies was found to be key for successful customs strategy. Physical border patrol, customs cooperation with other agencies and one stop border post explained 92.6% leaving 7.4% unexplained. The researcher concluded that there is need to evaluate other factors that contribute to success of customs strategy in controlling smuggling of goods at Kenya borders. The study recommended that all government agencies should adopt effective physical border patrols along the borders, and work in collaboration with other stakeholders such as communities living around border posts. The study sees border patrols would be effective through having informers stationed within given distances to cover wide areas. This would act as a better deterrence mechanism where they would also relay information to 24-hour surveillance centers. The informer approach would be more effective, especially along borders where customs is unable to deploy its officers on a 24-hour basis. Satisfactory levels of up to 85% would be achieved.
Customs strategies in controlling smuggling of goods in Kenya.
(KESRA/JKUAT - Unpublished research project, 2019) Odago, Oscar Okoth
The aim of this study was to determine the effectiveness of customs strategies in controlling smuggling of goods in Kenya. The study was guided by four specific objectives; effectiveness of physical border patrol, effectiveness of customs cooperation with other agencies, and effectiveness of one stop border post in controlling smuggling of goods in Kenya. The study was also guided by; routines activity theory, collaborative advantage theory, social impact theory and situational crime prevention theory. The study used a descriptive research design. The target population of this study was the customs staff at Namanga One Stop Border Post and Nairobi customs region. The study used stratified random sampling technique to determine a sample size of 214 respondents, which was 87.2% of the total 460 staff targeted. Simple random sampling was used to select respondents. The study employed a questionnaire to collect primary data. The questionnaire comprised of close-ended questions. The study generated qualitative data. Qualitative data was coded and entered into Statistical Packages for Social Scientists (SPSSVersion23) and analysed using descriptive statistics. Qualitative data was presented in form of tables. The study found that; Physical border patrol, Customs cooperation with other agencies and One stop border post as customs strategies had an effect in controlling smuggling of goods at Kenya borders. The study established that multiple agencies are required to work in harmony to complement the strategy since cooperation among agencies was found to be key for successful customs strategy. Physical border patrol, customs cooperation with other agencies and one stop border post explained 92.6% leaving 7.4% unexplained. The researcher concluded that there is need to evaluate other factors that contribute to success of customs strategy in controlling smuggling of goods at Kenya borders. The study recommended that all government agencies should adopt effective physical border patrols along the borders, and work in collaboration with other stakeholders such as communities living around border posts. The study sees border patrols would be effective through having informers stationed within given distances to cover wide areas. This would act as a better deterrence mechanism where they would also relay information to 24 hour surveillance centers. The informer approach would be more effective, especially along borders where customs is unable to deploy its officers on a 24 hour basis. Satisfactory levels of up to 85% would be achieved.
Determinants of cross-border trade facilitation at Namanga one-stop border- point.
(KESRA/JKUAT - Unpublished research project, 2019) Ouma, Dennis Ochieng'
The objective of this study was to establish the determinants of cross-border trade facilitation at the Namanga one-stop-border point.
Effect of anti –dumping strategies on custom revenue collection in Kenya
(KESRA/JKUAT - Unpublished research project, 01-12-18) Soi, Richard Kipkoech
The purpose of the study was to examine the effect of antidumping strategies on custom revenue collection in Kenya. The study was guided by the following research questions: how does adoption of countervailing duties strategy affect custom revenue collection, to what extent does use of penalties affect custom revenue collection, what is the effect of quota tariffs strategy on custom revenue collection. The study will utilize customs union theory and absolute & comparative theory. The study adopted a descriptive research design. The population of the study was 200 employees of KRA. This study adopted a stratified sampling technique to select a sample size of 170 respondents. A structured closed ended questionnaire was used to collect primary data. At the same time, primary data will be collected through use of questionnaires. At the point of data analysis, tables, and graphs will be considered. The findings on the extent to which countervailing duty affects custom revenue collection revealed a statistically significant relationship between countervailing duties and custom revenue collection. Majority of respondents believed that when an organization used this mechanism properly will lead to the reduction of dumping and growth of industries thus leading to enhance domestic industries competitiveness. The findings on the extent to which penalties strategy affect custom revenue collection revealed a statistically significant relationship between penalties and custom revenue collection. Many of respondents believed that when the government put stringent measures in place enhances compliances essential in the domestic industries growth and competitiveness. Equally, domestic industries survivals depend on the imports restriction which may have detrimental effects on their growths. The findings on the extent to which quota system strategy affect custom revenue collection revealed a statistically significant relationship between quota system and custom revenue collection. Majority of the respondents believed that systematic quota system is essential in enhancing domestic competitiveness. Most of the respondents believed that a suitable quota system strategy enhanced domestic industries performances while at the same time reducing chance for imports dumping. This study concludes that countervailing duties is an essential component of the organization antidumping strategy that enhanced custom revenue collection. Countervailing duties enhances competitiveness of domestic industries and promote legitimate trade which allows domestic industries to thrive in the country. This study has demonstrated that when the country invested in countervailing duties mechanisms, revenue collection performances is enhanced. This study concludes that penalties are important and essential in the country that is seeking to develop and enhanced revenue collection. Penalties mechanisms put in place by the organization do not only enhance revenue collection but guarantee future domestic industries performances. This study concludes that quota system is important to custom revenue collection. The reveals at through quota system played an important role in the reduction of dumping. Therefore, this study concludes that the relationship between quota system and custom revenue collection is statistically significant. The study recommends that available antidumping programs should be strengthened in order to reduce dumping in the country. In addition, antidumping strategies are critical component that determine the success of domestic industries and should not be ignored. Furthermore, it is equally important that Kenya should benchmark with other countries who have successfully implemented antidumping laws.
Effect of anti-smuggling strategies on custom revenue performances on ISEBANIA border – Kenya
(KESRA/JKUAT - Unpublished research project, 2018) Cheruiyot, Kibet Benard
The purpose of this study is to determine the effect of anti-smuggling strategies on custom revenue performances on Isebania border - Kenya. The study is guided by the research questions, how does adoption of risk profiling strategy affect custom revenue performances on Isebania border Kenya, to what extent does use of seizure strategy affect custom revenue collection in Kenya, what is the effect of border patrolling strategy affect custom revenue collection in Kenya. The specific research questions are to find out how adoption of risk profiling strategy affects custom revenue performances on Isebania border, to determine how use of seizure strategy affect custom revenue performances on Isebania border, to examine how border patrolling strategy affect custom revenue performances on Isebania border. The study will utilize theories of multiple and social deviance. In addition, the research design that will be adopted for the study is the descriptive research design. In this case, both middle and high level employees of the organization will be assessed. The target population of the study is 200 employees and sample size of 150 employees in the Customs service department. Through sampling method, the data will be collected from the organization. At the same time, primary data will be collected through use of questionnaires and interviews. Majority of respondents believed when customs department intensified and adopt risk management mechanisms, then smuggling across border will be minimized and as such the industries in the country will thrive which in turn lead to the enhanced tax performances. At border post if the border is properly surveillance then goods passing through border will attract custom duties hence increase tax performances. The findings on the extent to which seizure strategy affect custom revenue performances revealed a statistically significant relationship between seizure and custom revenue performances. Many of respondents believed that when the government applied seizure strategy is critical in the prevention of illicit goods flowing across border. If this properly managed will enhances compliances leading to positive growth of domestic industries and improve custom performances. Moreover, domestic industries become competitive if they do not face competition from smuggle goods which are relatively cheaper once they landed into local market which is detrimental to the custom tax growths. The findings on the extent to which risk profiling strategy affect custom revenue collection revealed statistically significant relationship between risk profiling and custom revenue performances. Majority of the respondents believed that risk profiling is essential in enhancing prevention of smuggling through documentation verification and physical scanning ascertains cargo crossing border. Most of the respondents believed that a suitable risk profiling strategy enhanced custom revenue performances while at the same time reducing chance for smuggling. This study concludes that risk management is an essential component of the country anti-smuggling strategy that enhanced custom revenue performances. Risk profiling enhances compliances of customs practices which has the effects on the performances of custom duties and promotes legitimate trade which allows domestic industries to thrive in the country. This study concludes that seizure is important and essential in the country that is seeking to develop and enhanced revenue collection. Seizure mechanisms put in place by the organization do not only enhance revenue collection but guarantee future domestic industries performances. This study concludes that border patrolling is important to custom revenue collection. The study recommends that available risk management should be strengthened in order to reduce smuggling in the country. In addition, seized goods from smugglers should be auctioned to raise tax and channeled into economy to discourage smuggling which has positive custom revenue performances which is essential for economy growth and should not be ignored. Furthermore, Kenya should strengthen surveillances and border control in order to prevent smuggling.
Effect of automated customs procedures on trade facilitation a case of clearing and forwarding agents in Nairobi region.
(KESRA/JKUAT - Unpublished research project, 2019) Kosgei, Simeon Kiprotich
It is noteworthy to note that in the recent past, several international organizations such as the World Customs Organization (WCO), Organization for Economic Co-operation, Development (OECD), the World Trade Organization (WTO) the World Bank and the European Union, have seen the need to take a proactive approach to modernize systems and processes aimed at increasing efficiency and as a such, there has been commendations on the usage of information and communication technology in enhancing trade facilitation aimed at improving customs processes. Further, there has been an increasing need for the governments to collect much revenues as well as the traders to expand their financial position a trend which has become a necessity in the current global economic slump. The studies main objective of the study was to analyze the effect of automated customs processes and procedures on trade facilitation for the clearing and forwarding agents in Nairobi region. Specific study objectives were; to establish the effect of automated goods declaration process on trade facilitation, to establish the effect of automated verification on trade facilitation, to establish the effect of electronic payment on trade facilitation, to establish the effect of automated release on trade facilitation. The study employed a descriptive survey to establish how automated customs processes and procedures affect trade facilitation for the clearing and forwarding agents in Nairobi region. The study targeted 150 clearing and forwarding firms within Nairobi. The study employed semi structured questionnaires to collect data from the respondents. Using stata, the data was analyzed and findings were presented in form of frequency tables and graphs. The study also, conducted a multiple regression analysis to establish the relationship between the study variables. The findings of the study show that automation of customs procedures and processes in the forwarding and clearing firms improves services through faster electronic lodgment also, it enhances capacity building of the staff through training and use of the system, it improves the effectiveness of the process in terms of accessibility and reliability, it leads to reduction of costs associated to clearance of goods and less physical examination of shipment. Also, automation of processes leads improved collection of taxes, duties and less fraud. Further, automated processes has led to uniform application of laws and regulation as well as inbuilt security. The policy implication is that there is need for all firms involved in clearing and forwarding firms to fully embrace and automate the customs procedures and system as it leads increased trade.
Effect of automation on customs revenue performance in Kenya: A case study of SIMBA 2005
(KESRA/JKUAT - Unpublished research project, 2018) Maina, Newton Karumba
Customs revenue growth is the main administrative approach for customs taxation in developed countries and the premise of this study is to investigate the effect of the implementation of Simba 2005 system on custom revenue performance in Kenya. Simba 2005 system is a web-based application that gives taxpayers the convenience of lodging entries online tax payments from the comfort of their homes or offices. Descriptive research design was used in order to ascertain reliability of data collected to describe the relationship between the variables of interest in the study and consequently test the research hypothesis. This study collected secondary data, secondary data was obtained from published material and information from other sources such as annual reports and published data from KRA and KIPRA before and after the implementation of Simba 2005. The research obtained quantitative data. Regression analysis was employed in data analysis with aid of the Statistical Package for Social version 23 Sciences (SPSS) package. Descriptive statistics included percentages and measures of central tendency (mean and standard deviation). The motive of the introduction of Simba 2005 system is an increase in the efficiency of customs revenue collection and revenue growth for the tax authority; however, the most importance object is the need to ensure stable customs revenue growth without having an unacceptable detrimental effect on the other key characteristics of a well-designed tax system. According to prior studies on this topic, one of the main facilitating factors in achieving these aims is the development of the level of a high efficient tax system and expanding trade facilitation. Census sampling of all the 14 customs revenue collected on Simba 2005 was used for the study. The variables for this study were automated payments system, declaration, entry lodgments and document processing. The study findings established that there was a significant increase in the customs revenue performance after the implementation of a Simba 2005system in 2005. prior to the introduction of the new system the average collections of revenue were low after which they increased significantly afterwards. The overall regression estimation of the model is significant at 5% level of significance. It indicates that the model is significant in explaining the relationship between the automated payment system, declaration, and document processing and customs revenue performance at a 5% level of significance. The results from the analysis indicates that automated payment system, declaration, entry lodgment and document processing are significant in explaining customs revenue growth at significance of 0.02.These finding are corroborated by findings on automated customs system on revenue collection by Sani (2009) in a study conducted in Nigeria that found that automated tax system reduced costs, saved time, improved accuracy, improved reliability and quality of services and eventually led to improved customs revenue collection and trade facilitation hence significant growth in customs revenue performance.
Effect of automation reforms on service delivery
(KESRA/JKUAT - Unpublished research project, 01-12-18) Mathaiya, Leah
The Customs & Border Control department is a critical department of Kenya Revenue Authority in terms of manpower, revenue collection and countrywide operational network. The department plays a critical role in the facilitation of trade through allowing goods entry into the country from diverse Kenya’s trading partners such as China, and Turkey among other countries. The items that are brought into the country include electronic goods, cars, clothes, and house utility items among other items. The ability of the Customs department to deliver on its mandate is therefore extremely key to the country. Therefore, this study sought to examine the customer experience aspects influence on the public service delivery. Among the aspects that influence the customer experience include automation reforms at customs, waiting time management and staff training aspects. The theoretical framework of the study will be based on the institutional theory, Expectancy Dis-confirmation Theory (EDT) and Stakeholder theory. The study was based on the descriptive research design. The accessible population of the study was 204 clearing agents. A sample size of 105 respondents was used in the study. A structured questionnaire was used for the study. The Cronbach alpha coefficient of 0.7 and above was used for the study. Data was analyzed using SPSS software.
Effect of Blue Economy initiatives on Customs performance in Mombasa, Kenya
(KESRA/JKUAT - Unpublished research project, 2020) Kathenya, Jane Gacheri
In the recent past, Kenya has taken steps to diversify the country’s Blue Economy resources for creation of jobs and enhance food security as well as spur economic growth. However, full potential exploitation of these resources has not been realized. The objective of this study was to study the effect of blue economy initiatives on customs performance in Mombasa, Kenya. This study sought to answer the following research questions; How do coastal fisheries initiative contribute to Customs performance at the port of Mombasa? What is the effect of marine tourism initiatives on Customs performance at the port of Mombasa? How does Maritime transport initiative affect Customs performance at the port of Mombasa? This study was guided by three theories which are the Viability theory, Push-pull theory and Security and game theory. Cluster sampling technique was used to select respondents from different sections of Customs and Border Control Department. The target population of this study was320 Customs and Border Control Staff out of which the sample size of 178 was considered sufficient. Sample size was arrived at by use of Yamane formula and this study used cross-sectional survey design. Data collection instrument used was structured questionnaires to collect the primary data which was distributed through drop and pick method. In this study data was analysed with both descriptive and inferentially using Statistical Package for Social Sciences (SPSS) version 26. Descriptive analysis analysed the means, medians, frequencies, percentages and standard deviations while the inferential statistics analysed the correlation, regression and ANOVA analysis to measure the relationship between variables.The study found out that all the independent variables had a positive correlation co-efficient with the dependent variable; they had a moderate positive correlation. That is Customs Performance had correlation coefficients for Coastal Fisheries initiative, Marine tourism initiative, and Maritime Transport initiative. Besides, all the independent variables are significant at 0.01 significance level. The researcher recommends the following: tapping into the blue economy, which has a great potential to contribute to higher and faster GDP growth in Kenya. Innovation and growth in the coastal, marine, and maritime sector could deliver food security, market access, and exploration of existing links of maritime tourism to the reality, domestic regulations benefits, and drawbacks that the sector of sporting activities can have on the local economy. Finally, enhancements of current maritime transportation and shipping regulations to provide a good framework conducive for business sustainability.
Effect of Border Control initiatives on Customs performance at Shimoni Border Station
(KESRA/JKUAT - Unpublished research project, 2020) Mwijaa, Mohammed Ahmed
Customs border control initiatives is expected to prevent the importation and exportation of an increasingly wide range of drugs, explosives, chemical and biological agents, drug precursors, goods which breach intellectual property laws and goods that do not meet accepted health or safety standards. The study sought to establish the effect of border control initiatives on customs perfomance at Shimoni. Specific objectives of the study included; determining the effect of patrolling on customs perfomance at Shimoni, establishing the effect of multi-agency co-operation customs perfomance at Shimoni and examining the effect of Risk management systems on customs perfomance at Shimoni. The theoretical framework of the study was made up of; complex adaptive system theory, the institutional theory and Technology Acceptance Model. The study adopted a descriptive research design and a target population comprising of 105 officers from KRAs enforcement unit, KPA security officers and the Kenya Police. A sample of 52 participants was selected for the study through stratified sampling technique. Data was collected by use of questionnaires then tested for validity and reliability before analysis. Data analysis was done using descriptive and inferential statistics with the help of statistical package for social sciences pilot tests was conducted for validity and reliability using content analysis and Cronbach factor analysis. Findings of the study were presented in tables, charts and explained in descriptive summaries. The study established that: patrolling influences Custom perfomance. Road and land surveillance were found to be the most influential factors of perfomance, this was followed by enhanced water way surveillance; Multi-agency co-operation influences Custom perfomance. The most influential factor observed was the role done in the agencies in boosting Custom enforcement unit. Lastly, the study established that risk management systems influence Custom perfomance. According to the findings, the most influential factor risk management was included usefulness of risk mitigation. The study concluded that; patrolling, Multi-agency co-operation and risk management systems positively and significantly influence the perfomance of Shimoni custom unit. The study recommended for the adoption of high-tech equipments that can be used by the custom unit in the surveillance of border units and all entry points. Kenya Ferry management should acquire automated machines or unmanned machines that can do both air, land and sea surveillance more effectively. Furthermore, the study recommended for the re-development of the collaborative approaches between the various multi-agencies to enhance swiftness efficiency in operations. The study suggested for further studies to be done to help in understanding how a system may fail to detect a risk but manage to mitigate the same and another study to establish the reasons as to why the country is still flooded with counterfeits.
Effect of custom union on Kenyan exports to Uganda
(KESRA/JKUAT - Unpublished research project, 2019) Mugo, Anthony M.
There are benefits that can be derived from regional integration schemes in Africa which include high economic growth, human capital development, macro- economic stability and promotion of regional common development projects especially infrastructure and increased bargaining power in international forum. Despite the integration efforts, Africa’s performance in light of existing integration agenda record has not been remarkable. Given the fact that Kenya’s exports to the region were rising prior to the implementation of the customs union and trade performance started to experience variations and decreased significantly after it became fully fledged in 2010, it is important to examine how the economic integration has influenced export trade performance with special focus on Kenya exports to Uganda. The purpose of this study was to establish the effect of custom union on Kenya exports to Uganda. This study used a descriptive research design to ascertain and be able to describe the characteristics of variables of interest. The target population of interest in this case was 74 Kenyan Exporters to Uganda. Due to the small target population, the researcher used census whereby all the targeted population was used. Primary data was in this study where questionnaires were used to collect data. Descriptive statistics such as frequencies, percentages, mean scores and standard deviation were used to analyze the quantitative data. A multivariate regression model was applied to determine the relative importance of each of the four variables with respect to Kenyan export to Uganda. The data was presented using tables and charts. The study found that elimination of internal tariffs affect the Kenyan export to Uganda in a great extent, that common external tariffs affect the Kenya exports to Uganda in a great extent, that the sensitive products affect the Kenya exports to Uganda in a great extent and that the customs management regulations greatly affect the Kenya exports to Uganda. The study concludes that elimination of internal tariffs had the greatest effect on Kenya exports to Uganda, followed by common external tariffs then customs management regulations while sensitive products had the least effect to Kenya exports to Uganda. The study recommends that that EAC needs to improve on the management regulations in order to create a smooth way of exporting from Kenya to Uganda, that EAC needs to improve and make transiting procedures easy and reliable for smooth exportation and that EAC should harmonize the charges on the goods being exported in order to make exportation cheap.
Effect of Customs Clearance Regimes On Revenue Collection of Customs and Border Control Department in Kenya
(KESRA/JKUAT - Unpublished research project, 2018) Chepkemei, Bett Vibian
Customs revenue is the major source of income for many if not all Governments. Cargo diversion is a very important topic in matters of revenue performance for a country. This study aimed at determining the effects of customs clearance regime on the revenue collection of customs and border control department in Kenya. The task included; establishing how transit goods, warehoused goods and temporary imports influence revenue collection of customs and border control department in Kenya. The study adopted a descriptive research design and employed quantitative research as the main approach to guide the study. The study targeted all 750 officers from the customs and border control department at the KRA Headquarter who were sampled to 260 respondents. The research instrument used in data collection was a questionnaire to draw information from the respondents. To ensure validity of the instruments, expert opinion was sought. Data analysis was started immediately after the field. Data was summarized into frequencies and percentages and presented in tables. The study findings reveal that majority of the customs and border control department of Kenya are males aged between 41-50 years who have competed diploma level of education as their highest level. The findings also reveal that majority of the staff worked had with the customs and border control department of Kenya for over 5 years and have accounts and finance as their career orientation. The findings give an implication that the staffs at the customs and border control department of Kenya are well educated and are able to tackle the issue of customs clearance regime with no issues. The study findings indicated that customs clearance regime affects revenue collection of customs and border control department in Kenya to a very great extent. The study found that there exists a positive association between: transit goods, warehoused goods, temporary imports and revenue collection of customs and border control department in Kenya. This positive association suggests that when one variable increases, revenue collection of customs and border control department in Kenya increases. The study therefore concludes that transit goods, warehoused goods, and temporary imports affect revenue collection of customs and border control department in Kenya. The study suggests that: there is need for political goodwill by the local dealers and support when fighting cargo diversion and coming up with stringent laws. The national government and KRA management should increase the allocated budget for more staff advanced training to help learn new tricks ahead of time so as to seal all possible loopholes. There is need for better upgraded internet connectivity especially at the border points to cut down on unnecessary delays which lead to corruption and hence reduction in revenue collected.
Effect of customs clearance regimes on Revenue collection of customs and border control department in Kenya
(KESRA/JKUAT - Unpublished research project, 2018) Bett, Vibian Chepkemei
Customs revenue is the major source of income for many if not all Governments. Cargo diversion is a very important topic in matters of revenue performance for a country. This study aimed at determining the effects of customs clearance regime on the revenue collection of customs and border control department in Kenya. The task included; establishing how transit goods, warehoused goods and temporary imports influence revenue collection of customs and border control department in Kenya. The study adopted a descriptive research design and employed quantitative research as the main approach to guide the study. The study targeted all 750 officers from the customs and border control department at the KRA Headquarter who were sampled to 260 respondents. The research instrument used in data collection was a questionnaire to draw information from the respondents. To ensure validity of the instruments, expert opinion was sought. Data analysis was started immediately after the field. Data was summarized into frequencies and percentages and presented in tables. The study findings reveal that majority of the customs and border control department of Kenya are males aged between 41-50 years who have competed diploma level of education as their highest level. The findings also reveal that majority of the staff worked had with the customs and border control department of Kenya for over 5 years and have accounts and finance as their career orientation. The findings give an implication that the staffs at the customs and border control department of Kenya are well educated and are able to tackle the issue of customs clearance regime with no issues. The study findings indicated that customs clearance regime affects revenue collection of customs and border control department in Kenya to a very great extent. The study found that there exists a positive association between: transit goods, warehoused goods, temporary imports and revenue collection of customs and border control department in Kenya. This positive association suggests that when one variable increases, revenue collection of customs and border control department in Kenya increases. The study therefore concludes that transit goods, warehoused goods, and temporary imports affect revenue collection of customs and border control department in Kenya. The study suggests that: there is need for political goodwill by the local dealers and support when fighting cargo diversion and coming up with stringent laws. The national government and KRA management should increase the allocated budget for more staff advanced training to help learn new tricks ahead of time so as to seal all possible loopholes. There is need for better upgraded internet connectivity especially at the border points to cut down on unnecessary delays which lead to corruption and hence reduction in revenue collected.
Effect of Customs Controls on National Security Risk in Kenya
(KESRA/JKUAT - Unpublished research project, 2020) Wabwire, Moses Juma
The main goal of the research study was to find out the effect of Customs controls on national security risk in Kenya. The specific objectives of the study were: to find out how post-clearance audit affects national security risk in Kenya, to establish how risk targeting affects national security risk in Kenya and to find out how verification of goods impacts on national security risk in Kenya. The relevant theories that the research study used include agency theory, prospect theory, queuing theory and regional security complex theory. The target population of the study was 262 Customs officers based at the Inland Container Depot in Embakasi and Times Towers. The stratified random sampling technique was used to sample the target population. The sampling rate applied to the study was 30% according to studies by (Mugenda & Mugenda, 2014) who recommended that a sampling rate of between 10%-30% is enough to use when making inferences about the target population. The closed questionnaire was used to collect data from the target population. Pilot testing was carried out to test the validity and reliability of the research instrument. data collected was presented using tables. Data analysis was done using mean, correlation analysis, analysis of variance and multiple regression in SPSS. Multiple Regression Model Y=β0 +β1X1 +β2X2 +β. The study found a positive correlation between verification of goods, risk management and post-clearance audit. Regression analysis results showed that there was a significant relationship between independent variables and the dependent variable as shown by regression equation Y= 1.197+0.913𝑥1+0.628𝑥2+0.255𝑥3+ɛ. The study concluded that verification of goods is an important Customs control process that help in the confiscation of goods thought to threaten the security of the society. From the study, risk targeting is the perfect control measure in ensuring security while facilitating trade because it gives an opportunity for customs to selectively verify goods. Post-clearance audit process is very important in the monitoring of goods capable of good and bad use. The study recommended that Customs should place dual use goods under specialized verification and monitoring processes for better control. The study also recommended that Customs should enhance advance information acquisition for better performance in the application of risk management. The study recommended that post-clearance unit should be facilitated with enough resources to intensify field audits for most of the security risk sources are in the premises where dual use goods are delivered.
Effect of customs import procedures on performance of used motor vehicle dealers in Mombasa County
(KESRA/JKUAT - Unpublished research project, 2019) Nabwire, Jennifer ; Mumia Benn MINCU, CPA.K
Globalization has made the world to become small village more impetuously, opening the boundaries and expanding the quantity of suppliers (exporters) as well as importers. Numerous firms to acquire some rare contributions or ideas of the better quality, or inputs at a lower value, import them instead of purchasing them from domestic suppliers. Studies show that there is a close relationship between business performance and customs procedures. Kenya, importers had complained that even after introduction of container scanners, the dwell time of goods at the port had not reduced significantly due to the existing high levels of verification even after electronic scanning has been carried out. Nordås et al. Notably, 24% of the transportation time is spent at borders. This study explores the effect of customs procedures on monetary value of used vehicles handlers in Mombasa County. The research was guided by general objective to ascertain the effect of customs import procedures on monetary realization of secondhand vehicle dealers in Mombasa. The specific objectives were; to determine the effects of computerization of customs systems on performance of secondhand motor vehicle dealers in Mombasa County. To establish the Effects of Customs import restraints on performance of secondhand motor vehicle dealers in Mombasa County. To establish how the adoption of customs import inspections has affected the Performance of Used vehicle dealers in Mombasa County. The study adopted three theories Environmental dependency theory, transaction cost theory and theory of ‘informality’ to review the existing literature and the variables under study. The study adopted a descriptive design and a population of 110 used car dealers in Mombasa while relying on a structured questionnaire as the main data collection instrument. The research was directed by a General objective of determining the effect of customs import procedures on performance of used motor vehicle dealers in Mombasa. The researcher revealed that automation of systems, Customs restrictions on imports and customs import inspections were among variables that prejudiced the realization of second hand cars traders. From the analysis, the results indicated that modernization had a positive and strong influence on performance of used motor vehicle dealers. This was supported by the correlation coefficient of r=0.706 and linear regression coefficient of 28.5%. The researcher established that customs restrictions on imports had a negative influence on performance of used motor vehicle dealers in Mombasa County. This was supported by correlation coefficient of -0787 and a linear regression coefficient of -0.395. Customs import inspections had a strong and a negative influence on performance of used motor vehicle dealers in Mombasa County. There was also a negative relationship as indicated by the linear regression. From the findings of this study, the researcher recommends on the following; Increase of automated customs systems in order to reduce cost of operations for the used motor vehicle dealer’s business hence increasing their performance. Minimize customs import restrictions to used car imports on age to as improve on sales of the used motor vehicles hence increasing performance. Reduce customs inspections on imports so as reduce delays observed in clearance of used motor vehicles.
Effect of customs procedures on cargo clearance: a case of inland container depot Embakasi.
(KESRA/JKUAT - Unpublished research project, 2019) Kimote, Jane Mueni
The study aimed to establish the effect of customs procedures on cargo clearance with reference to Internal Container Depot Embakasi (ICDE). The specific objectives of the study were to establish the effects of scanning, inspection, customs warehouse procedures on cargo clearance in ICDE. The study used mutual benefit theory queuing theory and agency theory to substantiate the concept of custom procedures and cargo clearance. Descriptive research design was used in the study, purpose sampling used for the top management and stratified random sampling used for both middle and operation level management. The study used a target population of 120 respondents drawn from ICDE comprising of custom clearance agents. The primary data was collected using interviews with management, and using questionnaires administered to ICDE agents. The study also used secondary data by reviewing custom’s reports and publications from ICDE and KRA. The data was analysed quantitatively and qualitatively using tables, percentage and charts for a period of four weeks. The study targeted the clearing agents who operate from ICDE. The study found that scanning, inspection of cargo and customs warehouse procedures affect cargo clearance at ICDE. Most respondents considered time taken by the procedures as long but also they concurred that more can be done to address the issue. The study established that scanning procedure is operational at ICDE and its importance in ensuring cargo clearance even though a number of challenges hamper it. Custom staff lack sufficient training in the use of the scanning equipment and operate under comprehensive standard operating procedures. Imported containers go through different types of inspections for many different reasons. Some inspections are random and some others are targeted by customs and other government agencies. The study recommended that customs department should add more scanners and during each inspection, all aspects of the scanning equipment should be checked, including all safety related features. Customs staff should be fully trained in all aspects of the use of the scanning equipment, including safety. The study also found out that warehouse procedures take time and that more staff should be added by customs to make it faster. The study also recommends that customs should sensitize the clearing agents on the importance of the custom procedures which is apart from collection of revenue is also important in protection of the society.
Effect of Customs procedures on the performance of clearing and forwarding agents operating at Customs Entry Points : a case of Inland Container Depot Nairobi.
(KESRA/JKUAT - Unpublished research project, 2020) Kipkoech, Brenda Jepkogei
The International business society has been expanding financing in ventures that encourage trade simplification, expansion of logistics in the emerging economies and incorporating sea ports. In Kenya, as in many other nations, Customs is in the frontline of the various agencies that mediate in international trade of goods. Customs procedures in Kenya suffered from manual operations, arbitrary decisions, corruption and delays in clearance. Lack of standardization policy for customs procedures has led to customs taking weeks to be cleared from customs making it inefficient. Therefore, there is need to establish the effect that customs clearance procedures have on the performance on the multi-agency stakeholders at customs entry points in Kenya. The general objective of this project is to identify the effects of customs procedures on the performance of multi-agency stakeholders at customs entry points in Kenya. The specific objectives are to determine the effects of customs declaration, customs verification and customs release procedures of clearing and forwarding agents in Nairobi, Kenya. The research included a relevant theoretical framework to frame and inform every aspect of the dissertation and therefore the research used four theories as a guide for the study: Resource-based theory which is aligned to independent variable of customs verification, Theory of queuing aligned to independent variable of customs release and Technology Acceptance Theory aligned to the dependent theory of performance. These theories are relevant in showing the importance of the research the assumptions and the application of the study. The study employed questionnaires to collect primary data. The questionnaires were designed based on the objectives of the study and derived from the literature review. Questionnaires were used because the study is concerned with the views, perceptions and feelings of the clearing and forwarding agents and such variables cannot be easily observed directly. Secondly, the sample size that was used in this study was also quite large and given the time constraints, the questionnaire was ideal tool for collecting data. The study used semi-structured questionnaires, with a mixture of focused and free-response items in a single instrument. This enabled the study to collect quantitative data from the closed-ended section and qualitative data from the open-ended sections. The study used a descriptive survey research design. The target population involved 350 clearing and forwarding firms based in the industrial area of Nairobi, Kenya. The sample size consisted of 30% of the target population representing 105 firms. Primary data was collected and spawned for the project at hand. Quantitative data collected was evaluated using regression analysis, and the study revealed that Customs procedures have an adequate impact on performance of clearing and forwarding agents. Inadequate scanners for verification, insufficient verification staff who can hardly verify 20 containers daily, SIMBA system downtime affecting declaration and manual processes for customs release were found to reduce clearance time. In areas that need improvement, most respondents cited installation of more scanners, smart gates technology and improving SIMBA system in order to reduce downtime. The study concludes that the process of declaration enhance the performance of clearing and forwarding agents to an adequate level. On the other hand, Customs verification and release were found to improved performance to a large extent. The findings further discovered that customs verification and release was significantly linked to performance. However, customs declaration was insignificantly related to performance. The coefficient of determination was 83.9% implying that it was appropriate for the data, the overall regression model was statistically significant since its p-value (0.000) was less than 5%. The study recommends the need to adopt pre-lodgment of documents to reduce delays in border clearance procedures.
Effect of Customs procedures on trade facilitation at the port of Mombasa in Kenya
(KESRA/JKUAT - Unpublished research project, 2019) Kasila, Christine N. ; Mumia Benn,MINCU, CPA.K
Customs procedures in trade facilitation lead to enhanced capacity for revenue collection, improved efficiency and reduction in the time and costs of trade transactions. Despite the implementation of customs procedural reforms to facilitate, traders in the East Africa region incur a whooping US$7 million annually in costs due to bureaucracy and red tape. There is inefficiency in clearance at the port of Mombasa in Kenya. The study examined the effects of customs procedures on trade facilitation performance at the port of Mombasa in Kenya. The study specifically examined the effects of customs licensing process, customs verification and release process and customs enforcement procedures on trade facilitation performance at the port of Mombasa in Kenya. The study was founded on the coordination theory, stakeholder theory and unified theory of technical acceptance and use of technology. Descriptive survey research design was adopted by the researcher. The study targeted 506 respondents, 190 customs officers and 316 clearing firms’ employees based in Mombasa. A sample of 224 respondents was involved in the actual study and selected through stratified sampling. The researcher tested the research questionnaire’s reliability and also ensured its validity before undertaking the main study. The supervisor was consulted in order to ensure content validity of the research questionnaire. Cronbach ‘s alpha coefficient was used to test the reliability of the research questionnaire. Data was collected using self-administered structured questionnaires. Descriptive statistical tools included frequency analysis, percentage analysis, mean and standard deviation. Inferential statistical tools were Pearson Product Moment correlation and multiple regression analysis. Tables were used in presentation of study findings. The study found out that customs licensing procedure has an insignificant negative effect on trade facilitation performance at the port of Mombasa in Kenya (β1 = -.026; p >0.05). It was determined that enhancing customs verification and release procedure leads to enhanced trade facilitation performance (β2 = 0.182; p < 0.05). It was established that enhancing customs enforcement procedures leads to enhanced trade facilitation performance (β3 = 0.540; p < 0.05). It was concluded that enhancing customs verification and release procedure and customs enforcement procedures results in enhanced trade facilitation performance. To KRA, this study recommended improvement of customs procedures in trade facilitation to enhance trade facilitation performance. This study will guide the adoption of customs procedures meant to ensure trade is facilitated in order to enhance the growth and development of Kenya’s economy.