3. 2020

Permanent URI for this collection

http://10.150.1.119/handle/123456789/2611

Browse

Now showing 1 - 20 of 36

Influence of organizational capabilities on the performance of Customs Services Department at Kenya Revenue Authority
(KESRA/JKUAT - Unpublished research project, 2020) Njuguna, Joylinda Wanjiku
For Customs Services in East Africa to succeed in a competitive global environment, they need good strategies. A strategy is a firm’s theory about how to compete successfully, a unifying theme that gives it coherence to its various actions. Strategy can be seen as the matching of resources and activities of an organization to the environment in which it operates. it can also be defined as the search for strategic fit between organization’s internal resources and competence on one hand and the external environment on the other hand.The general objective of this study is to find out the influence of organizational capabilities and their effect on performance of customs services department in Kenya. The specific objectives of this study was to establish the influence of the effect of management support on performance of customs services department in Kenya, to determine the effect of technological capacity on the performance of customs services department in Kenya and finally to examine the effect of resources capacity on the performance of customs services department in Kenya.The study adoped descriptive research design. The study used a target population of 200 employees from the various departments while the sample size of 60employees will be determined by 30%, since it has been argued that such a sample size is adequate for a descriptive survey study. Stratified random sampling technique was used to select respondents in the study population since it ensured that all the respondents have an equal and unbiased chance of participating in the study. A descriptive research design as well as use of questionnaires was also used in order to acquire the findings. Quantitative data was analyzed using tally sheet and presented by use of tables. In addition the study used multiple regression analysis to establish the relationship between the dependent variable and independent variables.The study concluded that management support has a significant and a positive affect on the performance of customs services department in Kenya.Regarding technological capacity, the study confirms that technological capacity affect performance of customs services department in Kenya given by multiple linear regression model which revealed that technological capacity is significantly and positively affect performance of customs services department and thus for every unit increase in technological capacity, lead to increase in the performance of customs services department.The study concluded that resource capacity significantly and positively affected the performance of customs services department in Kenya.This implies that resource capacity is important in performance of customs services department in Kenya and that organization successful at strategy performance of customs services department considers the resource capacity as the key factor in enhancing performance.The study established that management support affect the performance of customs services department in Kenya and it is recommended that the company management should have strong corporate leadership s through continuance learning of new methods and to keep up with the changes in the environment in order to ensure commitment of the employees. The management should display a consultative and participative management competence which entails treating all employees with respect, trusting them to do their work, listening to the opinions of the employees, and encouraging employees to learn from their mistakes through training and by guiding them in the right direction. It is therefore recommended that the management explicitly communicate the goals, vision and future direction of the company to the employees.
Factors influencing Intra-Regional Trade in East African Community : A case study of Kenya
(KESRA/JKUAT - Unpublished research project, 2020) Achacha, Cynthia
The objective of the study was to find out the factors affecting intra-regional trade volume in East Africa Community with Kenya as a case study. The population of interest consisted of Customs Officers from Kenya Revenue Authority, Traders, Clearing Agents and Transporters based in Nairobi. The major factors affecting intra-regional trade volume were identified as: infrastructure (p=0.000<0.05), non-tariff barriers (p=0.001<0.05) and tariff barriers (p=0.000<0.05). Infrastructure in EAC was found to have improved greatly over the years. The good roads network has reduced lead times and costs of transport by reducing cases of breakdown of trucks and delays in deliveries amongst the EAC Members. It was also found that the Standard Gauge Railway (SGR) established has shortened travel time from Mombasa to Nairobi, which has boosted trade in the region. In addition, it was noted that the East African ports substantially increased their container and general cargo traffic; however there are still extremely lengthy import and export procedures at the port causing delays. Regarding non-tariff barriers, it was found that they still exist in EAC despite the efforts to remove them. Quotas, embargos and subsidies still exist. Tariff barriers such as duty rates, different tax regimes and exemptions were found to affect trade in EAC. The high duty rates and disparities in tax regimes among EAC members have been found to distortions and negative impact on cross border trade in the region. Exemptions granted on some goods were found to boost trade in those goods. In conclusion, it was found that there have been a lot of efforts done by EAC to boost trade amongst them, but there are still areas that need to be improved upon if full potential is to be achieved.
Factors affecting the detection of temporary admission fraud at the Port of Mombasa
(KESRA/JKUAT - Unpublished research project, 2020-11) Thuo, James
The international trade volume has exponentially increased in the past six decades. However this pace of growth in international trade has not been matched with the resources mobilized by Customs and reinforcements have been limited. So as to stimulate export sector competitiveness, various duty and tax relief schemes have been designed to make sure imported goods meant for further processing or exhibition and later exported are exempted from tax and duty payment. There is lack of actual figures showing the magnitude of goods admitted temporarily in the country. The customs procedures does not provide for the mechanism to track those goods which have been let to the country on temporary admission. The purpose of the study is to investigate the factors affecting temporary admission fraud detection in port of Mombasa. The study specific objectives were to examine the effect of customs procedures on temporary admission fraud detection, to establish the effect of risk profiling on temporary admission fraud detection and to determine the effect of customs enforcement tools on temporary admission fraud detection in Mombasa port. The study was grounded on human capital theory, technology acceptance model and fraud diamond theory. The study adopted descriptive research design and target population of the study was 187 Customs staff tasked with tax and duty administration in Kilindini port.The study employed stratified sampling technique and adopted Slovins formula to obtain a sample of 127 participants. The study utilized both primary data and secondary data. Primary data was collected by use of structured questionnaires while the study utilized secondary data materials collected from port imports reports and incidence reports. The researcher adopted drop and pick later method to distribute the questionnaires to the respondents. Pilot study was carried out to ascertain the validity and reliability of data collection tools. The collected data was analysed, summarized and tabulated by use of SPSS software version 25. Descriptive analysis and inferential analysis was used to summarize the results for each of the study objectives. research findings also showed that respondents agreed to the statement that the temporary importation clearance process is efficient and the post-clearance follow-up is done by the customs officers. The study established that the Customs use scanners on the port of entry and the Customs has adequate cameras to detect imports fraud as well as tracking devises linked to central systems to prevent temporary admission fraud. The study concludes that the Customs department conducts risk evaluation based on the revenue involved before subjecting the case to the audit section of Kenya Revenue Authority. The study recommends that the Customs department should design and implement efficient and simple processes to be applied in clearance of temporary admission imports. These procedures would make it possible to clear and track the cargo while in the country. The department should heavily invest in tools of identifying risks which should be reliable and efficient. These tools would help to detect and prevent temporary admission fraud.
Factors affecting detection of counterfeit goods at the Port of Mombasa
(Unpublished Research Project, KESRA / JKUAT, 2020-11) Maina, Kelvin
In the contemporary world, globalization has influenced companies to pursue international trade deeply rooted in trade unions, partnership and merger. According to Forbes in 2018 counterfeiting is the largest criminal enterprise in the world. Africa as a region is facing a hard time fighting counterfeiting as is the case with all economics in the world. Revenue collection from the East African Community (EAC) is under threat from increased counterfeit goods. Revenue collection by Customs administrations remains a strategic priority for many developing countries. Being the largest port in East Africa, it is the port that faces many challenges when it comes to detection of the counterfeit goods This study was done at the Port of Mombasa. The study objectives are: To assess the effect of customs systems in detection of counterfeit goods at the port of Mombasa.Secondly is to determine the effect of border security in detection of counterfeit products at the port of Mombasa. And lastly is to investigate the effect of human resource in detection of counterfeit goods at the port of Mombasa. To bring this study to a success it adopted the hype circle theory, stakeholder theory and human capital theory. Descriptive research design was used to give further insight into the research problem by describing the variable of interest being studied. The target population was constituted of 180 respondents that comprise Kenya Revenue Authority Customs and Border control officers operating at the port of Mombasa The study used Slovins Formulae and cluster sampling technique to select respondents from various departments with an aim of providing equal chances. The researcher used questionnaires as the tool for data collection. The drop and pick method will be preferred since it is based on social exchange theory in which personal interactions provide a basis to stimulate norms of reciprocity and exchange that increase the chances a respondent will accept and complete the survey. The analysis was systematically presented in narrative form and data will be analysed using a recreational model and statistical package for social science (SPSS) version 26.0 for close-ended questions. The study concludes by suggesting that Custom should adopt the latest systems, technological tools. In addition, the information system used by customs have to be integrated with other agencies systems in the frontline of protection of the society against sub-standard and counterfeit goods systems as well as, incorporating those systems with counterfeit goods detection infrastructure would be of a great help.The study recommended that multi-agency approach in border security against the fight of counterfeit goods should be incorporated and regular investigation of the local market by customs has to be heightened in order to increase the detection of counterfeit goods.
Influence of Customs Computerized Systems on the Performance of Customs and Border Control Department of the Kenya Revenue Authority
(KESRA/JKUAT - Unpublished research project, 2020) Kipkemoi, Patrick Rotich
ICT systems use has been a great contribution to the worldly expansion of the economy through enhancement of trade and facilitation. Computerization of processes has also improved the relationship between businesses and customs agencies by easing the flow of work. ICT use in sector includes improvement of the entire process of clearance, from entries lodging, accepting and processing as well as declaration of goods for importing, exporting and transiting, taxes payment and goods assessment. Therefore the aimed to evaluate the effect of customs computerized systems on the performance of customs and border control department at Kenya Revenue Authority while focusing on three main specific objectives namely: information sharing, cargo security and training. By using a descriptive research design, the researcher targeted the KRA customs officers at the customs and control department (C&BC) selected through simple random sampling. Data collection was done through self-administered questionnaires, which adopted open and closed ended question structures. The researcher presented the results in tables, charts and graphs to facilitate improved analysis and comparison. Frequencies, descriptive statistics and regression analysis were used to analyze the results and draw conclusions and recommendations. The study found that Information Sharing, Cargo Security and Training are statistically significant and they influence the performance of KRA‟ customs and border control segment. The study recommends KRA should relook at the need to improve their reforms and also improve the validation of the computerized systems at C&BC. KRA should deploy more vigorous and continuous training on its employees as this will help them adopt to the new technologies being implemented into the department by the organization. There is also a need to research on the challenges facing customs officers when handling the ustoms computerization systems.
Influence of Customs Post Clearance Audit on Revenue Collection in Kenya
(KESRA/JKUAT - Unpublished research project, 2020) Odhiambo, Daniel Okong'o
The purpose of this study was to explore the influence of post clearance audit on revenue collection in Kenya. The specific objectives of the study were to establish the influence of post-importation transaction verification on revenue collection, to determine the influence of desk audit verification influence on revenue collection and finally to establish the influence of on-site audit influence on revenue collection. Relevant theories were employed to show the relationship between Post Clearance Audit and related studies that is The investigation will audit the following theories; The Agency Theory, The Theory of Inspired Confidence and The Classical Theory of Tax Compliance, a survey research design was adopted and the target population was all the 69 Customs officers drawn from the Post Clearance Audit section at Times Tower, the study return rate was 46 officers equivalent to 67%. The study adopted probability sampling design and employed a simple random sampling technique to select the sample size. The study used structured questionnaires as tool for data collection of primary data. A pilot test was carried out to test reliability and validity of the questionnaire. Descriptive statistics data analysis method was applied to analyze data aided with SPSS to compute responses frequencies, percentages, mean and standard deviation results. Finally, Multiple Linear Regression was applied to test the relationship between dependent variable and the independent variables. The study concluded that Post Clearance Audit should be enhanced as a major factor that increases revenue collection. The study recommended that more resources should be invested in Post Clearance Audit for the authority to realize increase in revenue collection.
Factors affecting collection of Customs Trade Statistics at the Port of Mombasa
(KESRA/JKUAT - Unpublished research project, 2020-05) Muigu, Eliud ; Mumia Benn MINCU, CPA.K
Customs Administrations is a government agency that plays a critical role at the country’s border and manages the cross-border flows of goods, people and means of transport to ensure they comply with law. Customs is at forefront of the global business activities with the responsibility, mandate and expertise to inform on what commodities are being exported, imported from where they originate or are transferred to, and the party involved. It is a costly exercise to produce data that are both up to date and precise and requires resources that most developing countries still lack. Most of the studies which have been done indicate that the formulation of procedures pertaining to trade should be easy to follow so that the broad and the medium-sized venture in the international business become easy to understand. Collection of trade statistics is a routinely process that need data generated which assist in determining the likelihood of the set targets being achieved This research paper focused on the study of the factors affecting the collection of trade statistics at the Port of Mombasa. Among the factors studied include the customs system, customs procedures and CET factors that influence the collection of trade statistics. This study was done at the Port of Mombasa. The study objectives are: To determine the effect of customs systems on customs collection of custom trade statistics at the Port of Mombasa. Secondly is to ascertain the effect of custom procedures on customs collection of trade statistics at the Port of Mombasa and lastly to assess the effect of the Common External Tariffs (CET)on customs collection of trade statistics at the Port of Mombasa. To bring this study to a success it adopted resource-based theory, bureaucracy theory and the Stolper-Samuelson Theorem. The researcher employed the cross-sectional survey design. A total of 325 officers were in the Port of Mombasa as at September 2019. The study adopted Slovins Formulae and cluster sampling technique to select respondents from various departments with an aim of providing equal chances. The researcher adopted the questionnaire as the tool for data collection. The drop and pick method were preferred since it is based on social exchange theory in which personal interactions provide a basis to stimulate norms of reciprocity and exchange that increase the chances a respondent will accept and complete the survey. The study targeted and distributed questionnaires to 180 respondents out of which 111 were fully filled. This represented 62 percent which is good and adequate for the study. Data analysis was done using the SPSS version 25.0 and a linear regression model to show the correlation between the independent and dependent variables of the study. The study used KMO and Bartlett’s test to check for the validity of the collection instrument. Karl Pearson analysis indicated that custom systems strongly with a positive correlation affects collection of trade statistics at the Port of Mombasa by 72.7% common external being the second influence by 63.7% and lastly, customs procedures indicated to be having a moderate correlation relationship with trade statistics at the port of Mombasa being supported 58.9% effect on collection of trade statistics at the port of Mombasa. Regression model findings statistically indicate that customs systems by 22.9%, custom procedure at 21.7% and common external tariff by 3.63% affected the dependent variable. The study concludes by opining that utilization of custom systems in collection of trade statistics based on the fact that all the imports and exports have to be longed online using custom systems thus it forms a rich source of obtaining trade information. Customs procedures helps to provide secondary data about the traders such as the compliance level of the trader and forms the basis of profiling the traders and thus the authority should ensure all the set criteria is adhered by anyone involving him/herself on cross border trade. And lastly, use of Common external tariff plays a major role in collection of trade statistics thus non-tariff barriers should be discouraged so as to promote trade among countries as advocated by WTO guidelines.
Effect of Customs Controls on National Security Risk in Kenya
(KESRA/JKUAT - Unpublished research project, 2020) Wabwire, Moses Juma
The main goal of the research study was to find out the effect of Customs controls on national security risk in Kenya. The specific objectives of the study were: to find out how post-clearance audit affects national security risk in Kenya, to establish how risk targeting affects national security risk in Kenya and to find out how verification of goods impacts on national security risk in Kenya. The relevant theories that the research study used include agency theory, prospect theory, queuing theory and regional security complex theory. The target population of the study was 262 Customs officers based at the Inland Container Depot in Embakasi and Times Towers. The stratified random sampling technique was used to sample the target population. The sampling rate applied to the study was 30% according to studies by (Mugenda & Mugenda, 2014) who recommended that a sampling rate of between 10%-30% is enough to use when making inferences about the target population. The closed questionnaire was used to collect data from the target population. Pilot testing was carried out to test the validity and reliability of the research instrument. data collected was presented using tables. Data analysis was done using mean, correlation analysis, analysis of variance and multiple regression in SPSS. Multiple Regression Model Y=β0 +β1X1 +β2X2 +β. The study found a positive correlation between verification of goods, risk management and post-clearance audit. Regression analysis results showed that there was a significant relationship between independent variables and the dependent variable as shown by regression equation Y= 1.197+0.913𝑥1+0.628𝑥2+0.255𝑥3+ɛ. The study concluded that verification of goods is an important Customs control process that help in the confiscation of goods thought to threaten the security of the society. From the study, risk targeting is the perfect control measure in ensuring security while facilitating trade because it gives an opportunity for customs to selectively verify goods. Post-clearance audit process is very important in the monitoring of goods capable of good and bad use. The study recommended that Customs should place dual use goods under specialized verification and monitoring processes for better control. The study also recommended that Customs should enhance advance information acquisition for better performance in the application of risk management. The study recommended that post-clearance unit should be facilitated with enough resources to intensify field audits for most of the security risk sources are in the premises where dual use goods are delivered.
Factors affecting the performance of Rail Cargo Scanner at the new Container Terminal, Mombasa Port
(KESRA/JKUAT - Unpublished research project, 2020) Nyaranga, Eldina Atieno ; Mumia Benn MINCU, CPA.K
Electronic cargo scanning was meant to expedite clearance process and thus facilitate trade along the Northern Corridor. It has been reported by International Association of Ports and Harbors that there exist delays in processing logistics and paperwork at the new container terminal in Mombasa port. 22% of ports across the globe have reported delays of six to 24 hours in cross-border road transportation, with some reporting total discontinuation of movement. The general objective of the study was to determine the factors affecting the performance of rail cargo scanner at the new container terminal, Mombasa port. The effect of scanner adaptability, scanner staff capacity and environmental factors on the performance of rail cargo scanner at the new container terminal, Mombasa port were examined. Technological determinism theory, resource-based view theory and systems theory were the basis of this study. Descriptive cross-sectional survey research design was adopted by the researcher. The target population of the study was 824 clearing firms in Kenya as obtained from KIFWA registrations office. The accessible or study population was 316 clearing firms based in Mombasa. A census survey was conducted. Self-administered structured questionnaires were employed to collect data. The letter of introduction was first be obtained from Kenya School of Revenue Administration after which the pilot study was conducted. A pilot test involving 32 employees of clearing firms in Nairobi was conducted. The supervisor was consulted to ensure that that the research questionnaire had met the requirements for content validity and KMO and Bartlett test was also conducted to ensure content validity. Reliability of the research questionnaire was tested using Cronbach’s alpha coefficient. This researcher utilized descriptive statistics for data analysis. The descriptive statistical tools include; frequencies, percentages, means and standard deviations. Product Moment correlation coefficient and multiple regression analysis were the inferential statistical tools that were used for analysis. The data was presented in tables. The findings indicate that enhancing scanner adaptability increases performance of rail cargo scanner at the new container terminal, Mombasa port. The study established that enhancing scanner staff capacity enhances performance of rail cargo scanner at the new container terminal, Mombasa port. It was revealed that that improving environmental factors increases performance of rail cargo scanner at the new container terminal, Mombasa port. This study concludes that scanner adaptability, scanner staff capacity and environmental factors positively and significantly affect performance of rail cargo scanner at the new container terminal, Mombasa port. This study recommends that scanner adaptability, scanner staff capacity and environmental factors should be enhanced in order to improve performance of rail cargo scanner at the new container terminal, Mombasa port.
Factors affecting performance of Customs Patrols at the Port of Mombasa
(KESRA/JKUAT - Unpublished research project, 2020) Nzuki, Edwin Kitili
The public has for long time complained about the performance of customs and patrol department due to its numerous complex procedures. The Performance of customs and patrol has an integral role of managing trade and the main objective is to facilitate trade. Entry or exit has to be through authorized points and routes. Goods crossing the borders should pass through Customs clearance formalities. This study sought to establish factors affecting performance of custom patrol at the port of Mombasa. The study was guided by the following objectives: To examine the effect of infrastructure on performance of customs patrol at the Port of Mombasa, to examine the effect of human Resource capacity on performance of customs patrol at the Port of Mombasa and to ascertain the effect of technology on performance of customs patrol at the Port of Mombasa. The study would be of great value to the management of KRA, government of Kenya and even the future researchers. To provide the basis of the study, the following theories were used: Resource based theory, human capital theory and system theory. The study adopted cross-sectional research design, since it provided information on the study variable where the population targeted was 300 employees of various levels of agencies. The study used cluster random sampling technique in the determination of sample size where it involves dividing target population into subgroups of managers and supervisors. Primary data was collected and the study used structured questionnaires in form of Likert Scale statements to establish the relationship between the variables. The study used drop-pick method to collect data from the respondents. The study used Statistical package for social sciences (SPSS version 24) in data analysis and establishing relationship study variables. Out of 171 questionnaires distributed only 137, were returned which representing 80.12%. The coefficient on the effects of infrastructure on performance of custom patrol was found to be 0.462 with p-value of 0.000. On the effect of human resource capacity on performance of custom patrol, the coefficients were 0.194 with p-value of 0.000; finally, on the effect of effect of technology on the performance custom patrol, the coefficients were 0.114 with p-value of 0.023. The study concludes that human resource and infrastructure significantly contributes to custom patrol performance, also technology contributes to custom patrol performance but not as significant as compared to human resource and infrastructure. The study recommended that reforms should be incorporated on the automation of the custom patrol performance practices and improvement of human resource capacity.
Effect of Post Clearance Audit on Customs Revenue Collection : a case of Customs Service Department in Mombasa Port Kenya
(KESRA/JKUAT - Unpublished research project, 2020) Louis, Innocent Moruri
Revenue collection relates to the actions of a government agency to collect from the public outstanding financial obligations. Revenue can come from a variety of sources such as taxes, fees for licenses, fines or the use of state facilities. It involves the process by which government raise revenue from its people. Generally taxes are either collected by the central government or the government can give license to an agent who can collect on its behalf. This study focused mainly on the effect of post-clearance audit on customs revenue collection and the effectiveness of different methods of revenue collection in Kenya. It looked at four specific objectives; determining the effect of selection of audit cases, establishing the effect of the field work, and determining the relationship between post audit standards and revenue collection. It was informed by three theories which are related to revenue and post clearance audit namely; the Policeman Theory, the Lending Credibility Theory, and Theory of Inspired Confidence. The target population of this study was 1076 clearing and forwarding officers and staff working in the customs service department in Mombasa. The study used both primary data by use of questionnaire and secondary data obtained from relevant materials which represent academic research. The research instrument for this research was a closed structure questionnaire. Quantitative data were gathered using questionnaires and they were processed using the SPSS version 22. Data were coded and entered into SPSS from which correlation analysis was used to evaluate the collected information. The finding of the study revealed that selection of audit, field work and post audit standards affects revenue collection and the study was statistically significant. The study recommends that on post audit standards KRA should put more emphasis through Post audit standard since it is an ineffective way to increase compliance. The study suggests the need for more research to find out why Kenya's traders are clearing up none-custom and increasing tax evasion activities.
Effect of Customs Reforms and Modernization on Customs Revenue collection in Kenya Customs Administration
(KESRA/JKUAT - Unpublished research project, 2020) Mwanzia, Faith Mueni
The study delves into the effects of custom revenue reforms and modernization regarding revenue collection. Global and local perspectives on how the reforms have influenced the customs revenue collected has also been put into consideration so as to make a comparison to the performance of the same at the Kenya Customs Administration. The study has the following key objectives: influence of automated systems on customs revenue collected, influence of capacity building on customs revenue, effect of intelligence risk management on customs revenue and lastly, to explore how enforcement strategies affect customs collected. Various theories related to the stated variables have also been discussed in the study. The statistical data used in the research includes that collected in the past ten years on the following customs revenue types: import duty, excise duty and the Value Added Tax. The study used descriptive design to clearly show the relationship revolving around independent variable termed as customs revenue collection and the dependent variables which include automated systems, capacity building, intelligence risk management and enforcement measures. Both primary and secondary data have been used in the study to collect the data required so as to come up with a quality study. Empirical review has also been emphasized in the paper through putting into consideration other related studies, for example study (Akala Jackson Ukiru ,2013) on impacts of changes and modernized performance of custom revenue department, (Kelvin Gitaru ,2017) on impact of system automation on customs revenue collected and (Janet Muthama ,2013) on the effects of modernization of revenue system and collection. A critique of these related studies is also illustrated and reflects its inadequacy in determining the influence of customs reforms and modernization on customs revenue hence creating an area for further study. The sample size was established according to the percentage recommended by (Mugenda and Mugenda) of at least 30%. The sample size used in this study was the total population which totaled to 140 customs officers. Finally, different ways of data presentation and analyses are outlined. For data presentation, tables were used. For the purpose of analyzing the collected data, the following methods were used; statistics as well as multiple regression table, descriptive analyses such as mean and standard deviation. From the data collection exercise, the study obtained a response rate of 85.71% satisfactory enough to complete the study. The results showed that automation, capacity building, intelligence risk management and enforcement strategy had a significant relationship with customs revenue collection therefore it was recommended that so as to collect more customs revenue, the Kenya Customs Revenue Administration should explore fully automated systems, train personnel on the use of the systems, employ intelligence risk management as well as enforcement strategies like scanning of cargo and strengthening clearance audits.
The effect of electronic cargo monitoring on trade facilitation in Kenya
(KESRA/JKUAT - Unpublished research project, 2020) Wandera, Margaret Khamala
Trade globalisation and establishment of economic blocks and agreements have led to increase in export and importation level of goods and services across national boundaries. With the increase of trade volume of businesses, there has been need to introduce appropriate facilitation measures during the transportation process and at the border post to ease the process of cargo movement. The ratification of the World Trade Organization (WTO) Agreement on Trade Facilitation also requires that we implement measures to ensure fast movement of goods in transit. One of the common trade facilitation measures is the electronic tracking of imported cargo transiting through Kenya. The use of technologies, for example, Radio-frequency identification (RFID), to track physical flow of physical goods is one prominent system that is envisaged to improve cross-border trade between countries. RECTS is a web- based integrated system used to monitor transit cargo under customs control (whose taxes have not been paid) in Kenya, Rwanda and Uganda from point of Loading to final destination within the mentioned countries. The study aim was to establish the effect of electronic cargo monitoring on trade facilitation in Kenya. Specific objective was to determine the effect of electronic cargo monitoring on trade facilitation in Kenya and EAC region as well as its effect on customs processes. The research adopted an exploratory research design and focus on the structure of an enquiry with an aim of drawing inferences from a causal relationship of the data. The target respondents were transporters, cargo tracking department officers (transit and monitoring Unit), rapid response team and customs officers at Busia one stop border post with purposive and convenience sampling designs to be employed to aid in identifying the respondents. Given the small population, census approach was adopted. The researcher therefore worked with 95 respondents. Primary data was collected using a semi-structured questionnaire. Secondary data was obtained from the Transit Monitoring unit office of the Kenya Revenue Authority Customs & Border Control department. The findings aimed at determining whether E-monitoring adopted by Kenya Revenue Authority will be able to reduce transit cargo diversion to local market as well as reducing the time taken to clear the cargo at the border points and the collection of duties and fines. The findings indicated that implementation of the ECTS has improved border efficiency, reduced transit time and time taken to clear goods at the border. Finally, the study finding indicated that due to the implementation of the system, clearance of cargo at the border point has been hastened and the collection of duties and fines made easier. Based on the study findings, the study concludes that electronic cargo tracking system has a positive impact on cross-border trade. The study recommends that a further study should be carried out to establish the challenges facing cargo tracking system on cross-border trade between Kenya and other neighbouring countries.
Factors affecting performance of the Intergrated Customs Management System project at the Port of Mombasa
(KESRA/JKUAT - Unpublished research project, 2020) Abeid, Salim Awadhan
The iCMS was introduced in order to improve the efficiency and effectiveness of border clearance process. It is meant to reduce delays involved in export and import clearance as evidenced in Europe and Latin American where port dwell time which is less than a week. This is in sharp contrast to the average dwell time at the port of Mombasa is 11 days. The iCMS is meant to ensure an efficient process of clearing cargo and hence reduce delays with overall aim of ensuring streamlined processes. The introduction of the iCMS is a major step undertaken by KRA to ensure efficient clearance process by customs. Despite the initiative being in place, delays are still being encountered. The general objective of the study was to determine the factors affecting performance of the iCMS at the port of Mombasa. The study specifically determined the effect of cost control, infrastructure and human resource capacity on performance of the iCMS project at the port of Mombasa. The study was founded on transaction cost theory, resource-based view theory and human capital theory. Descriptive cross-sectional survey research design was adopted by the researcher. This study targeted a total of 355 respondents, that is, 210 KRA customs officers, 100 KPA officers, 30 KEBS officers and 25 KEPHIS officers-at the port of Mombasa. The researcher sampled 189 respondents. The researcher used stratified sampling to select the respondents that participated in the study. The study used self-administered structured questionnaires to collect data. A pilot test enabled the determination of the reliability of the research questionnaire and ensure its validity. Content validity and face validity of research questionnaire was achieved through consultations with the supervisor. Reliability of the research questionnaire was tested using Cronbach‘s alpha coefficient. The researcher utilized both descriptive and inferential statistics for data analysis. The descriptive statistical tools included frequencies, percentages, means and standard deviations. Inferential analysis entailed correlation and multiple regression analysis. It was established that cost control, infrastructure and human resource capacity positively and significantly affect performance of the iCMS project at the port of Mombasa. It was determined that increasing cost control by 1 unit increases performance of the iCMS project at the port of Mombasa by 0.250 unit. The study established that enhancing infrastructure by 1 unit enhances performance of the iCMS project at the port of Mombasa by 0.319 unit. It was revealed that that increasing human resource capacity by 1 unit increases performance of the iCMS project at the port of Mombasa by 0.389 unit. The study concluded that cost control, infrastructure and human resource capacity positively affect performance of the iCMS project. It was recommended that cost control, infrastructure and human resource capacity should be enhanced in order to enhance performance of the iCMS project. This study is expected to benefit various stakeholders such as KRA and other state agencies, the government, policy makers and future researchers.
Factors affecting the implementation of Single Customs Territory in the East African Community
(KESRA/JKUAT - Unpublished research project, 2020) Kipchumba, Dorcas
The implementation of Customs Union can be meaningful if there is net benefit to each Partner States, which would have not been realized without it. The issue is not whether the partners benefit equally but it is important that each partner state feels that there are benefits directly gained from the implementation of Customs Union. The Single Customs Territory (SCT) on the other hand can be described as the stage for full attainment of the customs union which is attainable by the removal of duties and other restrictive regulations and/or minimization of internal border customs controls on goods moving between Partner States with an ultimate realization of free circulation of goods. The purpose of this study was to determine the factors affecting the implementation of the East African Community Single Customs Territory (EAC-SCT). The study was guided by the following three specific objectives; to establish the effect of ICT system on the implementation of the East African Community Single Customs Territory, to determine the effect of multiple membership on the implementation of the East African Community Single Customs Territory and to assess the effect of legal framework on the implementation of the East African Community Single Customs Territory. The study was informed by Technology acceptance model, Gravity Theory of Economics and the Customs Union Theory. The study employed a descriptive research design. The target population for the study was 36 representatives from the 5 member states based in the Inland Container Deport Nairobi (ICDN). Data was collected by use of a 5 point likert questionnaire and analysed by use of SPSS V26. The descriptive statistics and inferential statistics were generated and presented in tables. The study established that, implementation of EAC-SCT had significant positive correlation with each of the three predictor variables used in the study. The study concluded that if the partner states want to ensure faster and successful implementation of EAC-SCT, they must invest in the three variables used in this study. The study recommends that the EAC should invest in modern ICT system. In addition, the community should address the challenge of multiple membership to several Regional Economic Blocs and strengthen the legislations related to the implementation of the EAC-SCT so as to avoid the challenges brought by lack of clear guidelines on trade between the five countries. Tariffs and trade policies should also be harmonised.
Factors affecting Customs Marine Unit performance at the Port of Mombasa
(KESRA/JKUAT - Unpublished research project, 2020-11) Talam, Edward ; Mumia Benn MINCU, CPA.K
Owing to the strong influence on economic and social issues, the research study was pegged on the thematic dynamic factors affecting customs marine operations performance at the port of Mombasa along the Kenyan coast as the department intends to enforce protection of the porous borders. The study focused on three objectives along with theories that were in line with them such as Human resource theory which examined the human resource factors, the stakeholder’s theory which examined the border security strategy and factors including the involvement of the multi governmental agencies to boost on the operations of the Kenyan coast on security issues and to deter illegal activities namely illegal fishing, drug trafficking and human trafficking along the porous coastal region. The resource based view theory examined equipment as the study objectives. The study adopted a descriptive research design and questionnaires were used for the targeted respondents who were the Customs personnel in enforcement, Marine police and KPA officers who are 230 in number. A sample of 146 respondents was extracted by the use of Slovenes formula. Piloting was done to determine reliability and validity by use of 10 questionnaires as well as Cronbach’s Alpha coefficient used to check for reliability. Data was analyzed using SPSS Version 25 where results were presented in tabular form and figures. Multiple regression analysis was done to establish how independent variables influence dependent variables. The findings of the regression analysis conducted proved that there was a positive significant effect of human resource on the customs marine operations as indicated by the values β1 = 0.341, p<0.01. Regression analysis was also conducted on to establish the relationship of the second objective and the results showed a positively significant effect of equipment on customs marine operations as indicated by the values β2 = 0.472, p<0.01. Finally, Regression analysis was also conducted on the third independent variable and the results proved that there was positively significant effect of border security strategies on the customs marine operations as indicated by the values β3 = 0.437, p<0.01. The study concludes that the level of education determines the competence level of staff and that incorporating multi agencies approach onboard as well as incorporating four-legged officers more frequently widens its scope and affects the performance of the customs marine operations. The study recommends that the stakeholders should lobby for the government to allocate a common office for agencies involved and one command center. The study also recommends that the stakeholders should be adequately trained since it was established that training of staff in marine unit affects its operations and that government should adopt the latest systems and technological tools as it was established that use of up to date systems and modern technological tools affect marine operations. The new system should configure with the existing systems so as to enable ease of transformation with little integration costs as possible.
Factors affecting performance of Electronic Cargo Tracking System in Customs and Border Control department
(KESRA/JKUAT - Unpublished research project, 2020) Mathenge, Esther
The main objective of this study was to identify various factors that affect the performance of Electronic cargo tracking system in C&BC department of KRA. In particular, investigated information technology, staff capability and management support on how they effect on performance of electronic cargo-tracking system. To achieve these objectives, both quantitative and qualitative research approaches were used to collect data from both the primary and secondary sources. The target population of this study consisted of 125 respondents who consisted of Customs officers, clearing agents and traders who use and operate the ECTs. This study adopted a descriptive research design and stratified random sampling was done to determine the sample size where 21 respondents formed the sample size of the study. The primary data was collected using 21 questionnaires where only 18 of them were fully answered. The secondary data used in this study was collected from relevant books and journals that were related to this study. Descriptive and inferential statistics through the application of measures of central tendency was employed to analyze and interpret the data. Data presentation will be t tables and a bar chart. The model adopted in the study was regressed accordingly and the variables of the study were analyzed. Staff capability had the largest impact on the performance of ECTs with a coefficient of 1.9557 units followed by Information Technology with an impact of 0.9702 units and lastly Management support had the least impact with a coefficient of 0.3182. SPSS software version 23 was used in regressing and finding the fitness of the model. Pilot results of the study were also evaluated using the SPSS software version 23. Summary of the findings of the study were discussed based on the objectives of the study. After the summary and discussions, recommendations for future research study were given where the researcher noted key areas.
Effect of Customs procedures on the performance of clearing and forwarding agents operating at Customs Entry Points : a case of Inland Container Depot Nairobi.
(KESRA/JKUAT - Unpublished research project, 2020) Kipkoech, Brenda Jepkogei
The International business society has been expanding financing in ventures that encourage trade simplification, expansion of logistics in the emerging economies and incorporating sea ports. In Kenya, as in many other nations, Customs is in the frontline of the various agencies that mediate in international trade of goods. Customs procedures in Kenya suffered from manual operations, arbitrary decisions, corruption and delays in clearance. Lack of standardization policy for customs procedures has led to customs taking weeks to be cleared from customs making it inefficient. Therefore, there is need to establish the effect that customs clearance procedures have on the performance on the multi-agency stakeholders at customs entry points in Kenya. The general objective of this project is to identify the effects of customs procedures on the performance of multi-agency stakeholders at customs entry points in Kenya. The specific objectives are to determine the effects of customs declaration, customs verification and customs release procedures of clearing and forwarding agents in Nairobi, Kenya. The research included a relevant theoretical framework to frame and inform every aspect of the dissertation and therefore the research used four theories as a guide for the study: Resource-based theory which is aligned to independent variable of customs verification, Theory of queuing aligned to independent variable of customs release and Technology Acceptance Theory aligned to the dependent theory of performance. These theories are relevant in showing the importance of the research the assumptions and the application of the study. The study employed questionnaires to collect primary data. The questionnaires were designed based on the objectives of the study and derived from the literature review. Questionnaires were used because the study is concerned with the views, perceptions and feelings of the clearing and forwarding agents and such variables cannot be easily observed directly. Secondly, the sample size that was used in this study was also quite large and given the time constraints, the questionnaire was ideal tool for collecting data. The study used semi-structured questionnaires, with a mixture of focused and free-response items in a single instrument. This enabled the study to collect quantitative data from the closed-ended section and qualitative data from the open-ended sections. The study used a descriptive survey research design. The target population involved 350 clearing and forwarding firms based in the industrial area of Nairobi, Kenya. The sample size consisted of 30% of the target population representing 105 firms. Primary data was collected and spawned for the project at hand. Quantitative data collected was evaluated using regression analysis, and the study revealed that Customs procedures have an adequate impact on performance of clearing and forwarding agents. Inadequate scanners for verification, insufficient verification staff who can hardly verify 20 containers daily, SIMBA system downtime affecting declaration and manual processes for customs release were found to reduce clearance time. In areas that need improvement, most respondents cited installation of more scanners, smart gates technology and improving SIMBA system in order to reduce downtime. The study concludes that the process of declaration enhance the performance of clearing and forwarding agents to an adequate level. On the other hand, Customs verification and release were found to improved performance to a large extent. The findings further discovered that customs verification and release was significantly linked to performance. However, customs declaration was insignificantly related to performance. The coefficient of determination was 83.9% implying that it was appropriate for the data, the overall regression model was statistically significant since its p-value (0.000) was less than 5%. The study recommends the need to adopt pre-lodgment of documents to reduce delays in border clearance procedures.
Effects of Kenya Revenue Authority innovation strategy on the performance of Customs at the Port of Mombasa
(KESRA/JKUAT - Unpublished research project, 2020-11) Mbogo, Faith Wambui ; Mumia Benn MINCU, CPA.K
The study’s main objective was to establish the effects of Kenya Revenue Authority’s innovation strategy on Customs performance at the Port of Mombasa. It was guided by three specific objectives namely: to determine the effect of process innovation strategy on Customs performance at the Port of Mombasa; to establish the effect of customer service innovation strategy on Customs performance at the Port of Mombasa as well as to examine the effect of tax base expansion innovation strategy on Customs performance at the Port of Mombasa. The research adopted a descriptive research design. The population for the study was Customs Agent firms in Mombasa and who were members of KIFWA. Slovene’s formula was used to arrive at the sample size. The samples used in the study were selected using simple random sampling technique to select a sample size of 241 respondents from a total of 608. The questionnaire was adopted as the primary tool for data collection. A pilot study was conducted to determine the reliability and validity of the data. A KMO Bartlett’s Test was used to test for the validity of the research instruments. Descriptive and inferential statistics using S.P.S.S. were used to analyze the data. Results of this data analysis were presented using frequency distribution tables. The study found a moderate positive significant correlation between process innovation and customs performance (r=0.479, P=0.000). Regression analysis conducted proved that there was a positively significant effect of process innovation on customs performance as indicated by the values β1=0.107, t=2.437, p<0.05. The findings also indicated that there was a moderate significant correlation between customer service innovation and customs performance (r=0.587, P=0.000). Regression analysis was also conducted and the results showed a positively significant effect of customer service innovation on customs performance as indicated by the values β2=0.193, t=3.372, p<0.05. Pearson correlation was also conducted and the findings indicated that there was a moderate positive significant correlation between tax base expansion innovation and customs performance (r=0.554, P=0.000). Regression analysis was also conducted and the results proved that there was positively significant effect of tax base expansion innovation on customs performance as indicated by the values β3=0.125, t=2.340, p<0.05. The study recommends that the stakeholders of customs should be adequately trained in new and upcoming systems such ICMS since it was established that frequent training on new business processes are essential to the performance of an organization. Frequents sensitization programs such as tax payer awareness programs should be enhanced as it was concluded that the tax payer’s awareness programs have led to an expansion of the tax base. The study recommends that the government should come up with more interactive ways to bring services closer to the people through embracing fully social media platforms and providing real time assistance via these channels as the study shows that majority of customer queries can be solved by use of social media network platforms.
Effect of Border Control initiatives on Customs performance at Shimoni Border Station
(KESRA/JKUAT - Unpublished research project, 2020) Mwijaa, Mohammed Ahmed
Customs border control initiatives is expected to prevent the importation and exportation of an increasingly wide range of drugs, explosives, chemical and biological agents, drug precursors, goods which breach intellectual property laws and goods that do not meet accepted health or safety standards. The study sought to establish the effect of border control initiatives on customs perfomance at Shimoni. Specific objectives of the study included; determining the effect of patrolling on customs perfomance at Shimoni, establishing the effect of multi-agency co-operation customs perfomance at Shimoni and examining the effect of Risk management systems on customs perfomance at Shimoni. The theoretical framework of the study was made up of; complex adaptive system theory, the institutional theory and Technology Acceptance Model. The study adopted a descriptive research design and a target population comprising of 105 officers from KRAs enforcement unit, KPA security officers and the Kenya Police. A sample of 52 participants was selected for the study through stratified sampling technique. Data was collected by use of questionnaires then tested for validity and reliability before analysis. Data analysis was done using descriptive and inferential statistics with the help of statistical package for social sciences pilot tests was conducted for validity and reliability using content analysis and Cronbach factor analysis. Findings of the study were presented in tables, charts and explained in descriptive summaries. The study established that: patrolling influences Custom perfomance. Road and land surveillance were found to be the most influential factors of perfomance, this was followed by enhanced water way surveillance; Multi-agency co-operation influences Custom perfomance. The most influential factor observed was the role done in the agencies in boosting Custom enforcement unit. Lastly, the study established that risk management systems influence Custom perfomance. According to the findings, the most influential factor risk management was included usefulness of risk mitigation. The study concluded that; patrolling, Multi-agency co-operation and risk management systems positively and significantly influence the perfomance of Shimoni custom unit. The study recommended for the adoption of high-tech equipments that can be used by the custom unit in the surveillance of border units and all entry points. Kenya Ferry management should acquire automated machines or unmanned machines that can do both air, land and sea surveillance more effectively. Furthermore, the study recommended for the re-development of the collaborative approaches between the various multi-agencies to enhance swiftness efficiency in operations. The study suggested for further studies to be done to help in understanding how a system may fail to detect a risk but manage to mitigate the same and another study to establish the reasons as to why the country is still flooded with counterfeits.