Determinants of implementation of the East African Community Rules Of Origin, 2015 in Kenya
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Date
2020
Authors
Waweru, Jeremiah Gichuhi
Dr. Gitau, Florence
Dr. Koske, Naomi
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/Moi University
Abstract
The East African Community (EAC) has taken steps forward by implementing a free
trade area, customs union and a common market in its region. The implementation
of the former requires the removal of all trade barriers in the intra-regional trade.
The purpose of this study was to establish the determinants influencing the
implementation of the EAC RoO, 2015 in Kenya. It was guided by three specific
objectives namely; To establish the effect of Structure of the EAC RoO on the
implementation of RoO, 2015 in Kenya; To evaluate the effect of capacity of
customs personnel on the implementation of the EAC RoO, 2015 in Kenya; and To
determine the effect of stakeholder awareness on the implementation of the EAC
RoO, 2015 in Kenya. Customs union theory and theory of economic integration
were used as anchor to this study. The customs union theory focuses more on the
welfare gains and losses that go after the structuring of customs union while theory of
economic integration assumes perfect competition, and whose major concern is the
location of production of different kinds of goods. The study adopted explanatory
research design and covered the following agencies involved in the implementation
of Rules of Origin 2015 in Kenya; Kenya International Freight Forwarders and
Warehouses’ Association (KIFFWA), Members of the Kenya Association of
Manufacturers (KAM) and Kenya Revenue Authority. Staff in supervisory and
management positions in the three agencies were the focus of the study. There are
approximately 165managers in the three agencies that were all studied since the
study used census methodology. Federation of East African Freight Forwarders
Associations (FEAFFA) was used for pilot testing thus was not included in the final
data collection and analysis. It relied on primary data which was collected through a
structured questionnaire. Quantitative data was analysed using descriptive and
inferential statistics and results presented using figures and tables for easy
understanding and interpretation. The study findings indicated that structure of the
EAC RoO, capacity of customs officials and stakeholder awareness were key
determinants of implementation of RoO, 2015 in Kenya. Regression results showed
that 53.9% of the variations in implementation of 2015 East African Community
Rules of Origin in Kenya are jointly accounted for by the variations in structure of
the EAC RoO, capacity of customs officials and stakeholder awareness. The study
concluded that there was improved implementation of EAC Rules of Origin, 2015in
Kenya which was associated with effectiveness of critical success factors hence
successful implementation. It also concluded that the structure of the EAC RoO,
capacity of customs officials and stakeholder awareness had a positive influence on
the implementation of EAC Rules of Origin, 2015in Kenya. The study recommends
that that there is a need to sensitize and empower users at border stations and other
stakeholders about the changes in procedures that have been brought by the
implementation of Rules of Origin. The implementers; Kenya Customs also ought to
set practical implementation objectives with regards to timeframes, the clarity of
their action plans and the allocation of resources both human and financial. It also
recommends that stakeholders should be included in all pre-implementation and
inception phases as well in the execution of agreed upon strategies. This will
increase the acceptability, and create a bridging social investment for the strategy
implementation, as well as enriching the process with more ideas.
Description
Keywords
Rules Of Origin, EAC, CET