EFFECT OF REGIONAL ELECTRONIC CARGO TRACKING SYSTEM ON CUSTOMS REVENUE COLLECTION AT NAMANGA BORDER IN KENYA
Abstract
Purpose: Customs plays a vital role in the economic stability of any nation. Globally, customs administrations are tasked with essential duties, including revenue collection, societal protection, and safeguarding the security of supply chains. As the world increasingly operates as an interconnected global village, the exchange of goods and services across borders has become a universal priority. In Kenya, however, the Customs and Border Control Department has often fallen short of meeting the revenue targets set by the treasury. The main objective was to determine the effect of Regional Electronic Cargo Tracking System on customs revenue collection at Namanga border in Kenya. The study was supported by System Theory, Diffusion of Innovation theory.
Methodology: The study adopted descriptive research design. The target population was 234 KRA officials at Namanga border and a sample size of 148 respondents. This study used primary data which was collected using structured questionnaires. The inferential statistics comprises correlation analysis and multiple regression analysis.
Results: The inferential statistics comprises correlation analysis and multiple regression analysis. The correlation results revealed significant positive associations between Regional Electronic Cargo Tracking System with customs revenue collection (r=.640, p=.002. Regression analysis further indicated that Regional Electronic Cargo Tracking System (β=.227, p=0.002) were positively and significantly related to customs revenue collection.
Recommendation: Based on the results, findings, and conclusions, the study formulated several key recommendations. The findings revealed a statistically significant relationship between the Regional Electronic Cargo Tracking System in enhancing customs revenue collection at the Namanga border in Kenya. In light of these findings, the study recommends that KRA enhance customs revenue collection by improving RECTS use through staff training, system integration, inter-agency coordination, clear enforcement, and regular performance evaluations, ensuring greater efficiency, compliance, and revenue at the Namanga border. This study acknowledges several limitations. The descriptive research design limits the ability to establish causal relationships fully, and the reliance on cross-sectional data may not capture variations in customs revenue collection over time. For future research, comparative studies across multiple border points, longitudinal designs tracking RECTS performance over time, and cost–benefit analyses evaluating the economic impact of the system are recommended to provide deeper insights into the effectiveness and efficiency of electronic cargo tracking in enhancing revenue collection.
Key words: Regional Electronic Cargo Tracking System on customs revenue collection at Namanga border in Kenya
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