Effects of Cargo Diversion On Revenue Performance in KRA: Case Study Of The Customs And Border Control Services Department
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Date
2018
Authors
Kipsigei, Teresa
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
The advent of maritime and cross-border trade has brought intense pressure on governments to fundamentally change how they manage the cargo that move across so as to mitigate loss of revenue as well as enforce security in the dynamic business environments across international boundaries. Revenue collected is at the center stage in Kenya’s long-term development goals this is evident especially in the national policy strategic goals known as vision 2030. Vision 2030 aims at transforming Kenya into an industrialized middle income that enabled the country to be able to develop and compete global with the other developing nations. To be able to sustain development in parity with the expected levels, Kenya must maximize on revenue collected and reduce tax evasion incidences. One such key revenue collected is customs duty. This refers to taxes levied on imported or exported goods. The two types of customs duties collected under international trade are import and export duty. The duties are listed in the country’s tariff schedule. Duties may be ad valorem or specific. Cargo diversion is an unacceptable trade practice because it undercuts government revenue and discourages private sector investments in the oil and gas free zones. The objective of the study is to determine the effect of cargo diversion on revenue performance, focusing on the Customs and Border Control Services Department at KRA. The main objective of the study was to assess the causes of cargo diversion in Kenya, determine extent to which cargo diversion influences on revenue performance and determine challenges faced on cargo diversion management. The study was informed by Technological Determinism and Queuing Theory. This study adopted an explanatory design. The target population of this study comprised 1500 employees in KRA customs. Simple random was used to select a sample size of 110 employees. This study utilized only primary data which was obtained through questionnaire consisting of closed structured and open ended structured questions. The variables were tested for reliability by computing the Cronbach’s alpha statistical tests. Quantitative data was analyzed using descriptive statistical method, the statistical tools such as frequency distribution, tables. The data collected analyzed using regression analysis and correlation analysis.
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Keywords
Cargo Diversion, Customs