Effect of Customs Reforms and Modernization on Customs Revenue collection in Kenya Customs Administration
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Date
2020
Authors
Mwanzia, Faith Mueni
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
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.
Description
PROJ 330 MWA
Keywords
Revenue Collection, Customs Enforcement, Capacity building, Intelligence Risk Management, Duties and Taxes, K9, Online Payments