2. Customs Administration

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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(KESRA/JKUAT - Unpublished research project, 2018) Temba, Grace Lunyolo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
Coordinated Border Management and trade facilitation at Namanga Border Post, Kenya
(KESRA/Moi University, 2021) Ondari, Catherine Moraa; Dr. Nekesa, Marion; Dr. Komen, Joyce
Trade facilitation at the Namanga border post is currently facing a number of challenges that result into delays of clearance of goods across the Kenya-Tanzania border. The situation often encourages increased smuggling of goods as traders try to use shortcuts to avoid government agencies’ bureaucracies that always cause losses to several businesses due to delayed movement of commodities across the border. All these challenges are associated with disjointed coordination of trading by different agencies involved. The purpose of this study was to establish the effect of coordinated border management on trade facilitation in Kenya, focusing on Namanga one-stop border point. Specific objectives of the study included: to establish the effect of cooperation among border agencies, coordination between border agencies, border collaboration challenges between border agencies, coexistence among border agencies, and the effect of communication among border agencies on trade facilitation at the Namanga border point. New Trade Theory and Export Base Theory were used in the study. The study adopted causal research design and a target population of 140 staff of border control agencies at Namanga Border Point. Census was used to include all of them in the study where primary data was collected using a structured questionnaire and analyzed using descriptive (frequencies & percentages) and inferential (multiple linear regression) data analysis methods. The study’s key findings indicated that a unit increase in cooperation among border agencies would lead to a 0.153 increase in Trade facilitation at Namanga Border Post (β1=0.153, p=0.008<0.05); a unit increase in for Coordination of border agencies would lead to a 0.246 increase in Trade facilitation at Namanga Border Post (β2=0.246, p=0.014<0.05); a unit increase in Collaboration between border agencies would lead to a 0.123 increase in Trade facilitation at Namanga Border Post (β3=0.123, p=0.03<0.05); a unit increase in Coexistence among border agencies would lead to a 0.232 increase in Trade facilitation at Namanga Border Post (β4=0.232, p=0.001<0.05); a unit increase in cooperation among border agencies would lead to a 0.331 increase in Trade facilitation at Namanga Border Post β5=0.331, p=0.000<0.05). The study concluded that coordinated border management has a significant effect on trade facilitation at Namanga border post. The study recommended that there is need for the government and other key stakeholders to adopt international standards and tools of trade, such as SAFE Framework of Standards and performance of Time Release Study (TRS), that will help the identify bottlenecks and the border and address them efficiently. The study suggested that a comparative study should be carried out on the effect of coordinated border management on trade facilitation in at least two border points. A study should also be conducted on how the government is addressing challenges of coordinated border management to improve trade facilitation
Coordinated Border Management and trade facilitation at Namanga Border Post, Kenya
(Kenya School of Revenue Administration_Moi University, 2021) Moraa, Ondari Catherine
Trade facilitation at the Namanga border post is currently facing a number of challenges that result in delays of the clearance of goods across the Kenya-Tanzania border. The situation often encourages increased smuggling of goods as traders try to use shortcuts to avoid government agencies’ bureaucracies that always cause losses to several businesses due to delayed movement of commodities across the border. All these challenges are associated with disjointed coordination of trading by different agencies involved. The purpose of this study was to establish the effect of coordinated border management on trade facilitation in Kenya, focusing on Namanga one-stop border point. Specific objectives of the study included: to establish the effect of cooperation among border agencies, coordination between border agencies, border collaboration challenges between border agencies, coexistence among border agencies, and the effect of communication among border agencies on trade facilitation at the Namanga border point. New Trade Theory and Export Base Theory were used in the study. The study adopted causal research design and a target population of 140 staff of border control agencies at Namanga Border Point. Census was used to include all of them in the study where primary data was collected using a structured questionnaire and analyzed using descriptive (frequencies & percentages) and inferential (multiple linear regression) data analysis methods. The study’s key findings indicated that a unit increase in cooperation among border agencies would lead to a 0.153 increase in Trade facilitation at Namanga Border Post (β1=0.153, p=0.008<0.05); a unit increase in for Coordination of border agencies would lead to a 0.246 increase in Trade facilitation at Namanga Border Post (β2=0.246, p=0.014<0.05); a unit increase in Collaboration between border agencies would lead to a 0.123 increase in Trade facilitation at Namanga Border Post (β3=0.123, p=0.03<0.05); a unit increase in Coexistence among border agencies would lead to a 0.232 increase in Trade facilitation at Namanga Border Post (β4=0.232, p=0.001<0.05); a unit increase in cooperation among border agencies would lead to a 0.331 increase in Trade facilitation at Namanga Border Post β5=0.331, p=0.000<0.05). The study concluded that coordinated border management has a significant effect on trade facilitation at Namanga border post. The study recommended that there is need for the government and other key stakeholders to adopt international standards and tools of trade, such as SAFE Framework of Standards and performance of Time Release Study (TRS), that will help the identify bottlenecks and the border and address them efficiently. The study suggested that a comparative study should be carried out on the effect of coordinated border management on trade facilitation in at least two border points. A study should also be conducted on how the government is addressing challenges of coordinated border management to improve trade facilitation.
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.
Determinants of Dry Port performance in Kenya : a case of the Internal Container Depot, NAIROBI
(KESRA/Moi University, 2020) Okoyo, Brian Mokua; Dr. Ogaga, Bruce; Dr. Kemboi, Ambrose
In view of the global outlook, the rising number of container throughput and traffic globally has affected the functionality of seaports necessitating the emergence of dry ports. Dry ports have become an essential medium for seaports to solve the problem of rapid changes in globalization with the need to fulfill economies of scale and scope in the international market. Since the introduction of dry ports, there has been a lot of considerations with concern to Inland Container Depots targeted at improving port operations with an aim of making global trade more efficient and effective to all stakeholders. This study looked at the factors used by Embakasi dry port in optimizing its purpose as a way of providing solution to trade facilitation and ensuring there is free flow of containers at the Seaport in Mombasa. In particular, the study interrogated the determinants of dry port performance with a view of improving revenue collection. The explanatory variables used in this research project were Information Communication Technology, infrastructure, capacity of personnel and stakeholder cooperation. Hypothesis were formulated so as to describe an unknown but a tentative answer to what the research considered ought to be the possible outcome of an existing problem. Theories covered in this research project were the stakeholder theory, institutional theory and the theory of agency. The research used explanatory research design. Data collected was primary data through an ordinal scale involving close-ended structured questionnaires. The target population of the study consisted of 838 participants in international trade comprising of senior managers of Kenya Revenue Authority (KRA) customs and border control department, clearing and forwarding agents, and senior managers of Kenya Ports Authority (KPA). Sample size of 271 participants was selected using stratified random sampling technique. Data was collected at the Internal Container Depot (ICD) Nairobi and KRA headquarters, Nairobi for the financial year 2018/2019. The study employed descriptive and inferential statistical analysis to determine the relationship between variables using Statistical Package for Social Scientists (SPSS). In particular, correlation analysis and multiple regression analysis were used. The results are presented in the form of tables, and figures. The results of the multiple regression analysis revealed that Information Communication Technology (β1=0.141, p<0.05), infrastructure (β2=0.565, p<0.05), capacity of personnel (β3=0.094, p<0.05) and stakeholder cooperation (β4= 0.22, p<0.05) had a significant and positive influence on the performance of the dry port as p-values of the respective variables were less than 0.05. The model summary results revealed that there was a 77.2% variation in the performance of the dry port due to changes in Information Communication Technology, infrastructure, capacity of personnel and stakeholder cooperation. The study therefore concluded that that Information Communication Technology, infrastructure, capacity of personnel and stakeholder cooperation had a positive and significant effect on the performance of dry port. Therefore, KRA should develop a policy that enhances infrastructural development within the dry port through the construction of better facilities and foster useful collaborations and linkages with other border agencies involved in the process of customs clearance. The research suggested that future studies can evaluate the political, economic, social, technological, environmental and legal factors determining the performance of a dry port.
Determinants of Dry Port Performance in Kenya_A Case of the nternal Container Depot, Nairobi
(Kenya School of Revenue Administration_Moi University, 2021) Okoyo, Mokua Brian
In view of the global outlook, the rising number of container throughput and traffic globally has affected the functionality of seaports necessitating the emergence of dry ports. Dry ports have become an essential medium for seaports to solve the problem of rapid changes in globalization with the need to fulfill economies of scale and scope in the international market. Since the introduction of dry ports, there has been a lot of considerations with concern to Inland Container Depots targeted at improving port operations with an aim of making global trade more efficient and effective to all stakeholders. This study looked at the factors used by Embakasi dry port in optimizing its purpose as a way of providing solution to trade facilitation and ensuring there is free flow of containers at the Seaport in Mombasa. In particular, the study interrogated the determinants of dry port performance with a view of improving revenue collection. The explanatory variables used in this research project were Information Communication Technology, infrastructure, capacity of personnel and stakeholder cooperation. Hypothesis were formulated so as to describe an unknown but a tentative answer to what the research considered ought to be the possible outcome of an existing problem. Theories covered in this research project were the stakeholder theory, institutional theory and the theory of agency. The research used explanatory research design. Data collected was primary data through an ordinal scale involving close-ended structured questionnaires. The target population of the study consisted of 838 participants in international trade comprising of senior managers of Kenya Revenue Authority (KRA) customs and border control department, clearing and forwarding agents, and senior managers of Kenya Ports Authority (KPA). Sample size of 271 participants was selected using stratified random sampling technique. Data was collected at the Internal Container Depot (ICD) Nairobi and KRA headquarters, Nairobi for the financial year 2018/2019. The study employed descriptive and inferential statistical analysis to determine the relationship between variables using Statistical Package for Social Scientists (SPSS). In particular, correlation analysis and multiple regression analysis were used. The results are presented in the form of tables, and figures. The results of the multiple regression analysis revealed that Information Communication Technology (β1=0.141, p<0.05), infrastructure (β2=0.565, p<0.05), capacity of personnel (β3=0.094, p<0.05) and stakeholder cooperation (β4= 0.22, p<0.05) had a significant and positive influence on the performance of the dry port as p-values of the respective variables were less than 0.05. The model summary results revealed that there was a 77.2% variation in the performance of the dry port due to changes in Information Communication Technology, infrastructure, capacity of personnel and stakeholder cooperation. The study therefore concluded that that Information Communication Technology, infrastructure, capacity of personnel and stakeholder cooperation had a positive and significant effect on the performance of dry port. Therefore, KRA should develop a policy that enhances infrastructural development within the dry port through the construction of better facilities and foster useful collaborations and linkages with other border agencies involved in the process of customs clearance. The research suggested that future studies can evaluate the political, economic, social, technological, environmental and legal factors determining the performance of a dry port.
Determinants of implementation of the East African Community Rules Of Origin, 2015 in Kenya
(KESRA/Moi University, 2020) Waweru, Jeremiah Gichuhi; Dr. Gitau, Florence; Dr. Koske, Naomi
The East African Community (EAC) has taken steps forward by implementing a free trade area, customs union and a common market in its region. The implementation of the former requires the removal of all trade barriers in the intra-regional trade. The purpose of this study was to establish the determinants influencing the implementation of the EAC RoO, 2015 in Kenya. It was guided by three specific objectives namely; To establish the effect of Structure of the EAC RoO on the implementation of RoO, 2015 in Kenya; To evaluate the effect of capacity of customs personnel on the implementation of the EAC RoO, 2015 in Kenya; and To determine the effect of stakeholder awareness on the implementation of the EAC RoO, 2015 in Kenya. Customs union theory and theory of economic integration were used as anchor to this study. The customs union theory focuses more on the welfare gains and losses that go after the structuring of customs union while theory of economic integration assumes perfect competition, and whose major concern is the location of production of different kinds of goods. The study adopted explanatory research design and covered the following agencies involved in the implementation of Rules of Origin 2015 in Kenya; Kenya International Freight Forwarders and Warehouses’ Association (KIFFWA), Members of the Kenya Association of Manufacturers (KAM) and Kenya Revenue Authority. Staff in supervisory and management positions in the three agencies were the focus of the study. There are approximately 165managers in the three agencies that were all studied since the study used census methodology. Federation of East African Freight Forwarders Associations (FEAFFA) was used for pilot testing thus was not included in the final data collection and analysis. It relied on primary data which was collected through a structured questionnaire. Quantitative data was analysed using descriptive and inferential statistics and results presented using figures and tables for easy understanding and interpretation. The study findings indicated that structure of the EAC RoO, capacity of customs officials and stakeholder awareness were key determinants of implementation of RoO, 2015 in Kenya. Regression results showed that 53.9% of the variations in implementation of 2015 East African Community Rules of Origin in Kenya are jointly accounted for by the variations in structure of the EAC RoO, capacity of customs officials and stakeholder awareness. The study concluded that there was improved implementation of EAC Rules of Origin, 2015in Kenya which was associated with effectiveness of critical success factors hence successful implementation. It also concluded that the structure of the EAC RoO, capacity of customs officials and stakeholder awareness had a positive influence on the implementation of EAC Rules of Origin, 2015in Kenya. The study recommends that that there is a need to sensitize and empower users at border stations and other stakeholders about the changes in procedures that have been brought by the implementation of Rules of Origin. The implementers; Kenya Customs also ought to set practical implementation objectives with regards to timeframes, the clarity of their action plans and the allocation of resources both human and financial. It also recommends that stakeholders should be included in all pre-implementation and inception phases as well in the execution of agreed upon strategies. This will increase the acceptability, and create a bridging social investment for the strategy implementation, as well as enriching the process with more ideas.
Determinants of Implementation of the East African Community Rules of Origin, 2015 in Kenya
(Kenya School of Revenue Administration_Moi University, 2021) Waweru, Jeremiah Gichuhi
The East African Community (EAC) has taken steps forward by implementing a free trade area, customs union, and a common market in its region. The implementation of the former requires the removal of all trade barriers in intra-regional trade. The purpose of this study was to establish the determinants influencing the implementation of the EAC RoO, in 2015 in Kenya. It was guided by three specific objectives namely; To establish the effect of the Structure of the EAC RoO on the implementation of RoO, 2015 in Kenya; To evaluate the effect of the capacity of customs personnel on the implementation of the EAC RoO, 2015 in Kenya; and to determine the effect of stakeholder awareness on the implementation of the EAC RoO, 2015 in Kenya. Customs union theory and the theory of economic integration were used as anchors to this study. The customs union theory focuses more on the welfare gains and losses that go after the structuring of the customs union while the theory of economic integration assumes perfect competition, and whose major concern is the location of production of different kinds of goods. The study adopted an explanatory research design and covered the following agencies involved in the implementation of Rules of Origin 2015 in Kenya; Kenya International Freight Forwarders and Warehouses’ Association (KIFFWA), Members of the Kenya Association of Manufacturers (KAM) and Kenya Revenue Authority. Staff in supervisory and management positions in the three agencies were the focus of the study. There are approximately 165 managers in the three agencies that were all studied since the study used census methodology. The Federation of East African Freight Forwarders Associations (FEAFFA) was used for pilot testing and thus was not included in the final data collection and analysis. It relied on primary data which was collected through a structured questionnaire. Quantitative data were analyzed using descriptive and inferential statistics and results were presented using figures and tables for easy understanding and interpretation. The study findings indicated that the structure of the EAC RoO, the capacity of customs officials, and stakeholder awareness were key determinants of the implementation of RoO, in 2015 in Kenya. Regression results showed that 53.9% of the variations in the implementation of the 2015 East African Community Rules of Origin in Kenya are jointly accounted for by the variations in the structure of the EAC RoO, the capacity of customs officials, and stakeholder awareness. The study concluded that there was improved implementation of EAC Rules of Origin, 2015in Kenya which was associated with the effectiveness of critical success factors hence successful implementation. It also concluded that the structure of the EAC RoO, the capacity of customs officials, and stakeholder awareness had a positive influence on the implementation of the EAC Rules of Origin, 2015in Kenya. The study recommends that there is a need to sensitize and empower users at border stations and other stakeholders about the changes in procedures that have been brought about by the implementation of Rules of Origin. The implementers; Kenya Customs also ought to set practical implementation objectives with regard to timeframes, the clarity of their action plans, and the allocation of resources both human and financial. It also recommends that stakeholders should be included in all pre-implementation and inception phases as well in the execution of agreed-upon strategies. This will increase the acceptability, and create a bridging social investment for the strategy implementation, as well as enrich the process with more ideas.
Effect of adoption of Electric Cargo Tracking System on Excise Revenue Collection in Kenya A case of Jomo Kenyatta International Airport
(Kenya School of Revenue Administration_Moi University, 2021) Adago, Zedekiah Ochieng
Over the years, Kenya Revenue Authority has implemented reforms and modernization programs geared towards positioning it as an efficient modern tax administrator. Despite the positive developments, KRA has continued to miss revenue targets partly attributed to taxpayer’s noncompliance and inefficiencies in revenue management systems. To mitigate lack of adequate revenues, Ministry of Finance has continuously revised up its fiscal deficit on a number of occasions. Electronic Cargo Tracking System is a modern computer-based assessment system that was introduced by the Kenya Revenue Authority Customs department, to monitor cargo and improve revenue collection. The study aimed to determine the effect of adoption of electronic cargo tracking system (ECTS) on excise revenue collection in Kenya - a case of Jomo Kenyatta International Airport (JKIA) as an entry and exit point. The study was guided by the following specific objectives; to determine how cargo monitoring affects excise revenue collection at JKIA in Kenya; to investigate whether Information Sharing affects excise revenue collection at JKIA in Kenya; to establish if cargo Security has effectively contributed to excise revenue collection at JKIA in Kenya. The study adopted explanatory research design. The target population comprised of 300 Customs and technical staff of Kenya Revenue Authority stationed at JKIA Customs department. Stratified random sampling was used to identify the population which was Customs and technical officers assigned to ECTS. Modern portfolio theory, Diffusion of innovation theory, Technological determinism theory, Infusion theory of technology and Technological acceptance model are the theoretical frameworks that guided the study. The study employed primary data collection by closed ended structured questionnaire using five-point Likert scale. The findings of the Multiple regression analysis revealed that Cargo Monitoring positively and significantly influenced Excise Revenue Collection (β1=0.221, p=0.003): Cargo Security positively and significantly influenced Excise Revenue Collection (β2=0.334, p=0.000); Information Sharing positively and significantly influenced Excise Revenue Collection (β2=0.357, p=0.000). Therefore, the study concluded that adoption of Electronic Cargo Tracking System (ECTS) has had significant effect on Excise Revenue Collection in Kenya, as shown by the increase in excise revenue from Sh. 80 billion in 2010 to 165 billion in 2018. From the results, the study recommends that Kenya Revenue Authority should fully strengthen Cargo Monitoring, Cargo Security and Information Sharing in order to realize additional Excise Revenue Collection at JKIA. The study suggests that future research can evaluate other factors that affect Excise Revenue Collection at JKIA.
Effect of adoption of Electronic Cargo Tracking System on Excise Revenue collection in Kenya: a case of Jomo Kenyatta International Airport
(KESRA/Moi University, 2021) Odago, Zedekiah Ochieng; Dr. Bonuke, Ronald; Dr. Nekesa, Marion
Over the years, Kenya Revenue Authority has implemented reforms and modernization programs geared towards positioning it as an efficient modern tax administrator. Despite the positive developments, KRA has continued to miss revenue targets partly attributed to taxpayer’s noncompliance and inefficiencies in revenue management systems. To mitigate lack of adequate revenues, Ministry of Finance has continuously revised up its fiscal deficit on a number of occasions. Electronic Cargo Tracking System is a modern computer-based assessment system that was introduced by the Kenya Revenue Authority Customs department, to monitor cargo and improve revenue collection. The study aimed to determine the effect of adoption of electronic cargo tracking system (ECTS) on excise revenue collection in Kenya - a case of Jomo Kenyatta International Airport (JKIA) as an entry and exit point. The study was guided by the following specific objectives; to determine how cargo monitoring affects excise revenue collection at JKIA in Kenya; to investigate whether Information Sharing affects excise revenue collection at JKIA in Kenya; to establish if cargo Security has effectively contributed to excise revenue collection at JKIA in Kenya. The study adopted explanatory research design. The target population comprised of 300 Customs and technical staff of Kenya Revenue Authority stationed at JKIA Customs department. Stratified random sampling was used to identify the population which was Customs and technical officers assigned to ECTS. Modern portfolio theory, Diffusion of innovation theory, Technological determinism theory, Infusion theory of technology and Technological acceptance model are the theoretical frameworks that guided the study. The study employed primary data collection by closed ended structured questionnaire using five-point Likert scale. The findings of the Multiple regression analysis revealed that Cargo Monitoring positively and significantly influenced Excise Revenue Collection (β1=0.221, p=0.003): Cargo Security positively and significantly influenced Excise Revenue Collection (β2=0.334, p=0.000); Information Sharing positively and significantly influenced Excise Revenue Collection (β2=0.357, p=0.000). Therefore, the study concluded that adoption of Electronic Cargo Tracking System (ECTS) has had significant effect on Excise Revenue Collection in Kenya, as shown by the increase in excise revenue from Sh. 80 billion in 2010 to 165 billion in 2018. From the results, the study recommends that Kenya Revenue Authority should fully strengthen Cargo Monitoring, Cargo Security and Information Sharing in order to realize additional Excise Revenue Collection at JKIA. The study suggests that future research can evaluate other factors that affect Excise Revenue Collection at JKIA.
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.
The Effect of Authorized Economic Operators Programme on Trade Facilitation in Kenya
(Unpublished Research Project, 2019-10) Wangari, Faith Theresa
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.