Effect of Coordination of Border Management Practices on Cargo Clearance Efficiency in Kenya; A Case of Key Border Stations in Kenya

Abstract

Though the standard World Custom Organization clearance time is 3 days, the current clearance time in Kenya is 2 weeks or more which heightens the need for coordinated border management. Implementing coordinated border management strategies can reduce internal costs and inefficiencies, improve security, and increase their ability to facilitate trade and generate revenue at the border. However, despite the recognition of the importance of coordinated border management, the available studies are not conclusive on its effect on cargo clearance. The main objective of the study was to determine the effect of coordinated border management on cargo clearance in Kenya, a case of key border stations in Kenya. The specific objectives were to: establish the effect of coordinated flow of information between agencies, coordinated verification of goods and customs electronic procedures on cargo clearance at key border stations in Kenya. The study was anchored on three theories namely Theory of Constraints, Institutional Theory and System Theory. An explanatory research design was followed by the study targeting 445 employees and officials at four border stations in Kenya namely inland container depot in Nairobi and nonstop border posts at Namanga, Busia and Malaba. A sample size of 206 respondents was arrived at using Fischer formula. The study used primary data which was collected from the respondents using structured questionnaire and data analyzed using descriptive and inferential statistics. Statistical Package for Social Sciences computer software aided in the data analysis. Tables and graphs were used for presentation of findings. The study found out that Coordinated Flow of Information (r=0.118), Coordinated Verification of Goods (r=0.142) and Customs Electronic Procedures (r=0.287) have a positive effect on the cargo clearance at the border stations. The results of the regression analysis also showed that the CBM practices studied explain explain 53.1% of the variations in cargo clearance at the border stations (R 2 =0.531). From the hypothesis testing, Coordinated Flow of Information had a p value of 0.006, Coordinated Verification of Goods had a p value of 0.026 while Customs Electronic Procedures had a p value of 0.032 which shows that all the variables had a significant effect on cargo clearance (p<0.05). The study thus concludes that these CBM practices can severely enhance, hamper or interfere with the cargo clearing process at the border stations. The study recommends process re- engineering at the border posts which will allow customs to streamline procedures, and as a result perform tactical and operational activities in a harmonized fashion. The study also recommends relevant policymakers and government agencies from partner states should work together to implement a more cost-effective CBM practices. The study further recommends that C&BC department of KRA should effectively integrate cargo clearance functions with ICT based systems through application of electronic cargo clearance methods.