Abstract:
Over the years, Kenya Revenue Authority has implemented reforms and
modernization programs geared towards positioning it as an efficient modern tax
administrator. Despite the positive developments, KRA has continued to miss revenue
targets partly attributed to taxpayer’s noncompliance and inefficiencies in revenue
management systems. To mitigate lack of adequate revenues, Ministry of Finance has
continuously revised up its fiscal deficit on a number of occasions. Electronic is a modern computer-based assessment system that was introduced
by the Kenya Revenue Authority Customs department, to monitor cargo and improve
revenue collection. The study aimed to determine the effect of adoption of electronic
cargo tracking system (ECTS) on excise revenue collection in Kenya - a case of Jomo
Kenyatta International Airport (JKIA) as an entry and exit point. The study was
guided by the following specific objectives; to determine how cargo monitoring
affects excise revenue collection at JKIA in Kenya; to investigate whether
Information Sharing affects excise revenue collection at JKIA in Kenya; to establish if
cargo Security has effectively contributed to excise revenue collection at JKIA in
Kenya. The study adopted explanatory research design. The target population
comprised of 300 Customs and technical staff of Kenya Revenue Authority stationed
at JKIA Customs department. Stratified random sampling was used to identify the
population which was Customs and technical officers assigned to ECTS. Modern
portfolio theory, Diffusion of innovation theory, Technological determinism theory,
Infusion theory of technology and Technological acceptance model are the theoretical
frameworks that guided the study. The study employed primary data collection by
closed ended structured questionnaire using five-point Likert scale. The findings of
the Multiple regression analysis revealed that Cargo Monitoring positively and
significantly influenced Excise Revenue Collection (β 1 =0.221, p=0.003): Cargo
Security positively and significantly influenced Excise Revenue Collection (β 2 =0.334,
p=0.000); Information Sharing positively and significantly influenced Excise Revenue
Collection (β 2 =0.357, p=0.000). Therefore, the study concluded that adoption of
Electronic Cargo Tracking System (ECTS) has had significant effect on Excise
Revenue Collection in Kenya, as shown by the increase in excise revenue from Sh. 80
billion in 2010 to 165 billion in 2018. From the results, the study recommends that
Kenya Revenue Authority should fully strengthen Cargo Monitoring, Cargo Security
and Information Sharing in order to realize additional Excise Revenue Collection at
JKIA. The study suggests that future research can evaluate other factors that affect
Excise Revenue Collection at JKIA.
