Thesis:

Influence of automated systems on customs revenue collection in Kenya: a case of Namanga border in Kajiado county, Kenya

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. For instance, during the 2016/2017 financial year, the department managed to collect only 443.5 billion Kenyan shillings, falling short of the 462-billion-shilling target. In the subsequent financial year, 2017/2018, the collection totaled 469.97 billion against a target of 484.97 billion shillings (KRA, 2019). Kenya shares in merchandise trade remains very low at 2.7% in 2021, Kenya’s share in world exports declined from 3.5% in 2018 to 2.5% in 2022, the lowest regional share, (KRA, 2022). The main objective was to determine the influence of automated system on customs revenue collection in Kenya: A case of Namanga Border. The specific objectives were to determine the effect of Regional Electronic Cargo Tracking System, Integrated Customs Management System, Scanning technology and duty computation system on customs revenue collection at Namanga border in Kenya. The study was supported by Unified Theory of Acceptance and Use of Technology, Technological Change Theory, System Theory, Diffusion of Innovation theory. 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. The correlation results revealed significant positive associations between Regional Electronic Cargo Tracking System, Integrated Customs Management System, Scanning technology and duty computation system with customs revenue collection (r=.640, p=.002; r=.730, p=000; r=.678, p=001, r=.539, p=000). Regression analysis further indicated that Regional Electronic Cargo Tracking System (β=.227, p=0.002), Integrated Customs Management System (β=.394, p=0.000), Scanning technology (β=.257, p=0.001) and duty computation system (β=.293, p=0.000) were positively and significantly related to customs revenue collection. The study concluded that regional electronic cargo tracking system, integrated customs management system, scanning technology and duty computation system significantly affects customs revenue collection. The study recommends that, KRA should formulate policies that govern customs revenue collection and collection of taxes in general. Therefore, future research can be done on other factors not included in the study such as effect of compliance cost on customs revenue collection