Factors Affecting Customs Revenue in Kenya
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Date
01-10-18
Authors
Sindiga, Edwin
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
This study sought to determine the factors that affects the customs revenue collection in Kenya by using a panel gravity model with monthly time series data spanning 2010-2017. Empirical analysis shows a positive impact of the quality standards on revenue (29%) but negative on import values by (11%) in Kenya. The positive effect on revenue post quality standards period translates to an increment of Kshs 79 Billion from January 2016 to June 2017 cumulatively. The decline in imports is explained by restrictive import standards that have netted out low quality imports. Consequently, the revenue yield per shilling import (proportion of trade revenue to CIF values) has increased from 0.19 cents in pre quality standards period to 0.23 cents post quality standards period. On the other hand, procedural trade barriers associated with import standards have also contributed to imports decline. Several administrative and operational challenges were identified in this research. Therefore, the research paper recommends that management should address administrative challenges, seal legal loopholes and capacitate quality standards unit to undertake 100% imports verification.
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Keywords
Customs Revenue