5. 2018

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http://10.150.1.119/handle/123456789/2610

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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(KESRA/JKUAT - Unpublished research project, 2018) Temba, Grace Lunyolo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.
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 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 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 Risk Based Management Systems on Trade Facilitation in Kenya Revenue Authority
(KESRA/JKUAT - Unpublished research project, 01-12-18) Ogoti, Thaddeus Nyatwanga
The main challenge in the Kenya Revenue Authority, Customs Management and administration, especially in the last recent years, has been how to balance between the needs for trade facilitation as expected of by the World Customs Organization, WCO, to facilitate legitimate international trade as a process by the adoption of simplification, standardization and unification of documents and procedures in the internationally traded goods on one hand and the level of Customs Controls and interventions to be applied. The main aim of this study was to establish the impact that risk based clearance procedures have on the performance of the port. Specifically, on the time taken for clearing of goods, protection against prohibited and restricted goods. The study used descriptive research method which involve qualitative and quantitative data analysis. The data collection method was through the use of questionnaires and analyzed using SPSS. The study found out that risk based factors such as country of origin, the nature of commodities, the clearing agent, the importer and the historical data found in the system.
The Effect of Manifest Management System On Taxes Paid by Used Clothing Importers: A Case of Mombasa Port
(KESRA/JKUAT - Unpublished research project, 2018) Njeule, Micah Amge
The Customs and Border Control Department (C&BC) of Kenya Revenue Authority (KRA) launched the Manifest Management System (MMS) in September 2011 to facilitated electronic lodgment of manifests and amendments and enhance Manifest processing, reconciliation and accounting for cargo. This study was pursued to evaluate the effect of the MMS on taxes paid for used clothing. This was a comparative study on the effect of MMS on taxes paid for used clothing. The study covered a ten-year period from 2007 to 2016; five years prior to use of MMS in manifest management (2007-2011) and five years following the launch and use of MMS in manifest management (2012-2016). The study evaluated the effect of the system on taxes paid for used clothing between the two periods: pre and post MMS. Descriptive research methodology was adopted in this study. The population of interest in the study entailed importations of cargo meant for discharge at the Port of Mombasa. Since the population of the study was wide, a case study scenario was adopted in which case the sample was limited to used clothing. Therefore, the study purposively targeted importations of used clothing meant for local consumption, discharged at the port of Mombasa covering the specified period. The study used secondary data sourced from C&BC‟s Statistics Section. These were in form of data from customs declarations of used clothing covering a ten year period from 2007 to 2016.A regression analysis model was used in the analysis procedure using IBM SPSS statistics 23. The study revealed a great positive variation on the means of total taxes paid of used clothing as a result of the switch of manifest management operations from SIMBA 2005 System to MMS. This was an indication that submission, validation and reconciliation of containerized cargo in MMS resulted in a great positive effect on the average of the taxes paid for used clothing. The significant difference showed that the average taxes for the period following the launch of MMS (1,222,642) was greater than that of the period prior to its use (816,750), an indication that its use positively influenced the taxes paid for used clothing. The study recommended the need for C&BC to leverage on technological advancement to improve and advance their operations and ensure that a holistic and integrated approach in cargo management is adopted.
Effect of Post Clearance Audit On Revenue Collection in Customs and Border Control Department in Kenya
(KESRA/JKUAT - Unpublished research project, 2018) Mashalia, Conrad Lugonzo
Customs and border control that do not use audit-based controls usually concentrate their controls entirely at the border and at the time of import, and often apply a 100% physical examination approach. This leads not only to unnecessarily long delays at the border but is also a very ineffective and inefficient use of the limited control and inspection staff at the border. This led to the adoption of post clearance audit (PCA) in Kenya Revenue Authority. This study therefore sought to establish the effect of post clearance tax audit on revenue collection in the Kenyan customs department in Mombasa. The study also sought to determine the effect of post-importation transaction verification, customs desk audit and customs onsite audit on revenue collection in the Customs Services Department at times tower and JKIA. This study used a descriptive research design. The population of this study was 500 respondents; this included staff of clearing and forwarding firms at JKIA and customs staff at times tower. This study used stratified random sampling to select the 30% of the target population. The sample size of this study was therefore 200 respondents of which 150 responded. Semi-structured questionnaires was used in this study to collect primary data. Content analysis was used to analyze qualitative data and the findings were then presented in a prose form. On the other hand, Statistical Package for Social Sciences (SPSS version 20) was used to analyze quantitative data. Using this program, quantitative data was analyzed using inferential and descriptive statistics. Descriptive statistics such as mean, standard deviation, frequency and percentages were used in this study. In relation to inferential statistics, the study used correlation analysis to establish the relationship between the independent and the dependent variables. Data was then presented in tables, bar charts and pie charts. The study established that customs field audit influences revenue collection at customs services department most followed by customs post-importation transaction verification and customs desk audit. The study also established that post importation transaction verification lead to an improvement in revenue collection and reduces the amount of time it takes to clear goods and hence recommends that the management of the customs department should ensure that the post clearance audit procedures are followed to the letter. The study further recommends that the government of Kenya should formulate more policies to support and govern customs field audit and audit visits.
Effect of reforms in customs administration system on trade facilitation in Kenya
(KESRA/JKUAT - Unpublished research project, 01-10-18) Kibaki, Joel Muchiri
Customs administrations today face a variety of political and administrative pressures and challenges. These include fluctuating workloads with static or declining resources, greater business expectations, and continuing pressures to meet often-conflicting government revenue, trade facilitation, social protection, and national security objectives. To cope with these pressures and challenges, the international customs community looks to the applied use of information technology (IT) as a catalyst for improving organizational and operational efficiency and effectiveness. The general objective of this research was to establish the effect of reforms in custom administration system integrity, efficiency and governance on trade facilitation in Kenya. The specific objectives were to determine the effect of reforms in integrity of ICT infrastructure, improvements in efficiency of ICT service delivery and ICT governance reforms on trade facilitation in Kenya. This study was a descriptive cross-sectional survey. This study was carried out in Nairobi. The study involved 492 employees in the Customs Services Department of KRA at KRA headquarters in Times Towers, Nairobi. The sampling frame that was applied in this study was a list of employees in the Customs Services Department of KRA. This study employed stratified sampling technique to select the study participants. Questionnaire was utilized as data collection instrument in the current study. Analysis was through both descriptive and regression statistics. Presentation of results for both the descriptive and inferential statistics was through tables, pie-charts and graphs. Study results indicate that reforms in ICT integrity had significantly and positively affected trade facilitation (β = 0.540; t = 4.714; p < 0.05). Further, findings showed that reforms in efficiency of ICT service delivery positively and significantly influenced trade facilitation (β = 0.385; t = 2.550; p < 0.05). Additionally, study findings revealed that reforms in ICT governance at KRA had a significant and positive effect on trade facilitation (β = 0.174; t = 2.096; p < 0.05). From the study findings, the following recommendations are made. First, Customs initiatives, such as deferred payment of revenues, clearance on minimum information, periodic goods declarations, tariff-free policies and duty-free imports, and so on have to be carefully reviewed and integrated with any new legislation and systems upgrade. Secondly, any modernization of the customs systems should encompass the alignment of Customs procedures and documents with international standards, conventions and other instruments. Lastly, the introduction of Customs Automation by KRA should ensure that the systems it adopts are compatible with what other governmental departments and private sector stakeholders, whose activities involve Customs operations have.
Effect of single window system procedures on cargo clearance efficiency in Kenya: a case for Mombasa port
(KESRA/JKUAT - Unpublished research project, 2018) Kabui, Billy Ngumi
A Single Window Concept is a one-stop facility that allows exchange of information between all parties involved in trade across borders. It is aimed at reducing the complexity, time and costs of clearing goods at the ports. The Concept has been implemented in Kenya but not without its challenges, which affected its implementation. This include slow uptake by stakeholders and also it has taken long to fully implement the project. The general objective of the study is to identify the Effect of Single Window System on cargo clearance efficiency in Kenya: A case for Mombasa port specifically; to determine whether shipping procedures affect cargo clearance procedures at the port of Mombasa; To establish whether Pre-clearance permits procedures affect cargo clearance procedures at the port of Mombasa; To find out the effect Customs goods declaration procedures on cargo clearance procedures at the port of Mombasa. The research used a descriptive research design. The focus of the study was both Government agencies such KenTrade, KRA, KWS and KEBS and private sector represented by KIFWA members (Clearing Agents) and Cargo handlers based in Mombasa port. The census comprised employees from selected group totaling to a population of 119. The study used stratified random sampling that will group the population into two mutually exclusive categorizes i.e. government and private sector. An online questionnaire was administered, where a total of 96 out 119 responded to the questionnaire representing 80.7% response rate. Data was then analyzed using descriptive statistics mean, percentages and standard deviation for Likert scale statements and inferential statistics correlation, Analysis of variance, coefficient of determination and multiple regression. SPSS and Microsoft Excel were used to analyze data which developed smart tables and pie charts. The findings showed that, there has been improvements in Ship Manifest procedures, Pre-clearance permit procedures and Customs goods declaration which has improved efficiency in the Cargo clearance at the port of Mombasa. Overall the analyses showed that implementation of Single Window system has positive effect on cargo clearance efficiency at the port of Mombasa. However there is need for the government to streamline the cargo clearance at the Port of Mombasa allowing advance lodgments of manifest; automate some of the manual procedures such a CFS nominations; Address conflicting/duplication roles of some regulatory agencies managing the Pre-clearance procedures; Change laws which requires input of manual operation such stamping of clearance documents & allow electronic cargo authentication of documents; Improve port infrastructure such internet, road way which will improve flow of trucks.
Effect of trade facilitation on export performance in Kenya
(KESRA/JKUAT - Unpublished research project, 01-10-18) Chege, Michael
This study addresses trade facilitation on export performance in Kenya by tracking the achievements and implementation using Kenya as a case. The study uses descriptive research design and data for the study were mainly secondary data. The study found that as a result of implementation of trade facilitation initiatives, performance in trade, FDI inflows and trade taxes collection in all EAC countries have improved significantly. Kenya is performing well than the rest of EAC countries on external border agency cooperation, governance and impartiality while Tanzania performs better than other EAC countries in FDI inflows and contribution of export to the Gross Domestic Product (GDP). The study found a significant positive relationship between countries’ trade facilitation and export performance. Facilitation was found to have no significant relationship on FDI flows. The major setbacks of trade facilitation are non-tariff barriers, transport infrastructure, inadequate human resources capacity, and low level of automation.
The Effectiveness of Electronic Cargo Tracking System (ECTS) In Enhancing Revenue Collection Along the Kenyan Northern Corridor
(KESRA/JKUAT - Unpublished research project, 2018) Kebut, Lynne Jepkorir
The main aim of this study was to establish how ECTS which was implemented by KRA to ease monitoring of transit goods has impacted on revenue collection along the northern corridor. The study focused on trade facilitation, monitoring of cargo movement and tax leakage. The study used descriptive research design comprising of quantitative research techniques. The data was collected from primary sources through the use of questionnaires, from a target population of 58 staff from northern corridor observatory team who formed the sample for this study. The finding from the study shows that trade facilitation and monitoring of cargo positively contributes to revenue collection by a factor of 0.222 and 0.314 respectively. Further, the study found out that tax leakage negatively influences revenue collection by a factor -0.146, though this has been greatly reduced by implementation of ECTS. From the findings, it can be recommended that the government and the investors should embrace the use of ECTS because of positively impacts on revenue through enhancement of monitoring and trade facilitation. It also protects the local market through stabilization of prizes of goods since it reduces diversion that leads to tax leakage. Further, there is need for further research to establish wholesome view of the factors that influence revenue such as policies and infrastructure.
Effectiveness of scanner unit on revenue generation at the Port of Mombasa
(KESRA/JKUAT - Unpublished research project, 2018) Masaku, Christine Nthenya
According to the World Bank’s report, Kenya is ranked 122nd out of 155 countries in trade logistics efficiency. The index measures countries’ trade logistics efficiency. Our country Kenya performs better than the averages of Sub-Saharan African countries in areas of timeliness and international shipments. Trade facilitation plays a critical role in international trade because it is about expediting the clearance, release and movement of goods including those in transit. There is need for technical assistance and capacity building in trade facilitation is crucial. The Port of Mombasa at Kilindini facilitate trade for over four neighboring countries of Kenya. Physical inspection of containers is not feasible and that is why technologies such as cargo scanning are welcome. Thus the main objective of this study was to evaluate the effectiveness of the Scanner Unit on revenue generation at the Port of Mombasa and specific objectives to determine how operations of the Scanning Unit at the port leads to a significant collection of extra revenue, the effects of scan unit system integration on revenue generation at the port of Mombasa, to establish the relationship between employee professionalism of the scan unit and revenue generation at the port of Mombasa and to ascertain the link between port infrastructure on scan unit and revenue generation at the port of Mombasa. Quantitative methods were employed in collecting and analyzing the data. Both Primary and secondary sources of data would be used in collection of data. To ensure that the research questionnaire was reliable, a pilot study was undertaken. Content validity of the questionnaire was ensured by consulting the university supervisor. Cronbach’s alpha coefficient was used to test for reliability of the research questionnaire. Self-administered semi-structured questionnaires were used for collection of data. Descriptive statistics was employed in data analysis. Descriptive statistical tools included frequencies, percentages, means and standard deviations. Tables were used for presentation of study findings.
Effects of automated Customs systems on volume of transit trade along the Northern corridor in Kenya
(KESRA/JKUAT - Unpublished research project, 2018) Wanjau, Millymercy Nyambura
Customs is tasked with the role of facilitating all forms of international trade including transit trade by ensuring it provides accurate, predictable and speedy movement of goods across the border. This entails modernization and automation of processes through the adoption of several systems such as Simba System, Single Window System and ECTS. The purpose of the study was to establish the effects of automated customs systems on volume of transit trade along the Northern Corridor in Kenya. The study explored a descriptive design with the target population of the study involving customs officials, clearing agents and transporters of transit goods along the Northern Corridor in Kenya. The sample size of the study constituted 85 respondents. Primary data from respondents was collected through the use of self- administered questionnaires and analyzed using the Statistical Package for Social Scientists (SPSS). The response rate was 70.5% which was considered adequate for the purpose of the study. The findings were presented in bar charts, tables and figures. From analysis, the findings showed that automated customs systems had significant effect on volume of transit trade along the Northern Corridor. Single window system had a significance level of 0.002 with a paired t-test of 3.211. Simba system had a significance level of 0.000 with a paired t-test of 6.897. The ECTS had a significance level of 0.002 with a paired t-test of 3.112. Therefore, based on these findings, the government should enhance capacity building for clearing agents and customs officials to be up to date with this technological advancement in order to improve efficiency and effectiveness in the transit cargo chain.
Effects of Automated Processes On Customs Revenue Collection: A Case of Jomo Kenyatta International Airport
(KESRA/JKUAT - Unpublished research project, 2018) Abdirashid, Abdiaziz
In today’s competitive, fast-paced business landscape, getting the most out of available resources is not an option but rather a requirement. Organizations are taking a highly proactive approach to systems modernization and operations in an effort to increase efficiency and effectiveness in their operations. There is an increasing need by the government to collect much revenue by way of taxes to face the increasing financial expenditures budgeted by the country. The objective of the study was to determine the effect automated processes on customs revenue collection. This study employed descriptive study design. Secondary data from KRA custom database spanning from the financial year 2013/2014 to 2017/2018 was used. The data was analysed using Microsoft excel and presented in figures and tables. The study findings established that customs revenue collected from JKIA have been fluctuating over the study period. Further the study established that customs revenue collection from JKIA station is directly related to the electronic payment transaction but inversely related to the electronic declaration of cargo and electronic release of cargo. The study found out that automated processes have led to increase in electronic declaration of cargo, electronic payment transactions as well as electronic release of goods. This study recommends other station of customs to be automated for effective and efficient customs clearance processes.
Effects of Cargo Diversion On Revenue Performance in KRA: Case Study Of The Customs And Border Control Services Department
(KESRA/JKUAT - Unpublished research project, 2018) Kipsigei, Teresa
The advent of maritime and cross-border trade has brought intense pressure on governments to fundamentally change how they manage the cargo that move across so as to mitigate loss of revenue as well as enforce security in the dynamic business environments across international boundaries. Revenue collected is at the center stage in Kenya’s long-term development goals this is evident especially in the national policy strategic goals known as vision 2030. Vision 2030 aims at transforming Kenya into an industrialized middle income that enabled the country to be able to develop and compete global with the other developing nations. To be able to sustain development in parity with the expected levels, Kenya must maximize on revenue collected and reduce tax evasion incidences. One such key revenue collected is customs duty. This refers to taxes levied on imported or exported goods. The two types of customs duties collected under international trade are import and export duty. The duties are listed in the country’s tariff schedule. Duties may be ad valorem or specific. Cargo diversion is an unacceptable trade practice because it undercuts government revenue and discourages private sector investments in the oil and gas free zones. The objective of the study is to determine the effect of cargo diversion on revenue performance, focusing on the Customs and Border Control Services Department at KRA. The main objective of the study was to assess the causes of cargo diversion in Kenya, determine extent to which cargo diversion influences on revenue performance and determine challenges faced on cargo diversion management. The study was informed by Technological Determinism and Queuing Theory. This study adopted an explanatory design. The target population of this study comprised 1500 employees in KRA customs. Simple random was used to select a sample size of 110 employees. This study utilized only primary data which was obtained through questionnaire consisting of closed structured and open ended structured questions. The variables were tested for reliability by computing the Cronbach’s alpha statistical tests. Quantitative data was analyzed using descriptive statistical method, the statistical tools such as frequency distribution, tables. The data collected analyzed using regression analysis and correlation analysis.
The effects of cargo scanning on revenue collection at the Port of Mombasa in Kenya
(KESRA/JKUAT - Unpublished research project, 2018) Oduor, Emily Aoko ; Mumia Benn MINCU, CPA.K
The dual missions of ensuring national security and collecting duties and taxes are driving many governments towards implementing policies to maintain the integrity of the supply chain. Customs authorities in many parts of the world are grappling with the problem of significant tax loss, cargo theft and non-compliance to regulatory procedures. Cargo owners on the hand are more concerned with just in time and reliable deliveries, cost effective logistics and maintaining integrity of their cargo. The purpose of this study was to determine the effects of cargo scanning on revenue collection at the port of Mombasa in Kenya. The study was a descriptive research design. Cluster sampling was used to select a sample of the customs officers. The population of interest was 165 custom officers. A structured questionnaire was used to collect the information. Validation of instruments was done by discussing with the respondents and by the research supervisor. Frequencies and percentages were used to analyze the data. The findings pointed out that scanning procedures positively affected revenue collection by 0.232 or 23.2% while scanner downtime was found to affect revenue collection strongly on the negative way, by a 29.5% effect on the revenue collection. It was recommended that the number of scanners to be increased to cover more containers as well as reducing congestion at the scanning unit and delays. The number of trained scanner operators and image analysts should be increased at the station so as to maximize the efficiency of the scanner unit in detections and targeting. There should be proper maintenance of the scanners to avoid scanner downtimes and form a mixed partnership between government (KRA/CUSTOMS) and other private industries. Further, the port requires substantial reforms and upgrading to reach international standards and to meet the demands of a growing and increasingly integrated East African community. It is hoped that the results from this research will be useful to policy makers in Kenyan customs department, KPA and other stakeholders in developing best approaches in improving security of the supply chain thus creating a conducive environment for trade.
Effects of container freight stations on performance of Mombasa Port
(KESRA/JKUAT - Unpublished research project, 31-10-18) Musyoka, KenMorris M.
The port of Mombasa has been faced with inefficiencies through its operation, with congestion being a major problem. The adoption of the CFSs to help curb these problems at Mombasa port was meant to improve the port performance by eliminating such inefficiencies, years down the line after the adoption of these CFSs such inefficiencies among others are still being felt at the port having some stakeholders criticizing the operation of CFSs. The research sought to investigate the effects of the container freight stations on performance of Mombasa port with the specific objectives focusing on investigating the effects of Container Freight Stations Storage on Performance of port of Mombasa, determining the effects of customs clearance speed at the Container Freight Stations on Performance of Port of Mombasa and establishing the effects of CFS Cost on Performance of Port of Mombasa. The questions that the research sought to answer; to what extent do the Container Freight Stations Storage affects the performance of Port of Mombasa? To what extent has the customs Container Freight Stations Clearance Speed affected the Performance of Port of Mombasa? To what extent has the CFS Cost affected the Performance of Port of Mombasa? A descriptive design was used for the study, using a stratified random sampling technique to obtain sample size of 198 respondents from a population of 470 respondents, where the respondents were sampled across all strata which included KRA operations and KPA staff, various operational CFS and Clearing & Forwarding agents operating within Mombasa whereby the response rate of the study was 68%. The study largely relied on primary data collected using a closed end structured questionnaire. Collected data was analyzed using the SPSS 25 and the relationship between the variables examined using the Correlation analysis and regression analysis. The linear regression model used to describe the relationship between the independent variables (Container Freight Stations’ Storage, Customs Clearance Speed and Cost of Clearance) to the dependent variable (Port Performance). The study findings indicated that the independent variables explain 61.8% of the dependent variable. CFS storage was found to be affecting the Port Performance by 33.7%, Customs Speed of Clearance having 40.1% while CFS cost of Clearance 16.7%. the Regression analysis results are supported by the Correlation analysis which shown a strong relationship between the independent variables and the dependent variable for the variables CFS Storage, CFS Customs Clearance Speed and CFS Cost having coefficient of correlation r of 0.638, 0.700 and 0.530 respectively. The researcher therefore recommends on efficient utilization of the CFSs so as to improve the performance of the Port of Mombasa. Improvement on the CFS cost through revision and moderation of charges to importers, while reducing the Cost of Clearance, the customer satisfaction. The number of customs officers at the CFSs can be improved so as to improve the speed of customs Clearance further.