Effects of Kenya Revenue Authority innovation strategy on the performance of Customs at the Port of Mombasa
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Date
2020-11
Authors
Mbogo, Faith Wambui ; Mumia Benn MINCU, CPA.K
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
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.
Description
PROJ 338 MBO
Keywords
Customs Performance, Customer Service, Port, Innovation strategy, Cargo Clearance Processes, Social Media Networks