Effect of Electronic Cargo Tracking Systems (ects) implementation on performance of customs and border control department in Kenya

Abstract

The Custom and Border Control department in Kenya has continued to experience numerous challenges relating to transportation of Cargo in transit including theft, delays, regulation and compliance with regulations which contributed to significant loss of revenue to the government. This necessitated the implementation of an electronic tracking system providers whose core mandate is capturing real-time locations of Cargo in transit. Though applying the system has presented an opportunity for ensuring cargo security and information sharing, the effect this system has on performance is yet to be fully established. The purpose of the study was to determine the effects of ECTs implementation on the performance of C&BC department in Kenya. The specific objectives were to: find out the effect of ECT system infrastructure, ECT’s users and ECT compatibility on the performance of C&BC department in Kenya. An explanatory research approach guided the study. The population for this research comprised of 440 respondents encompassing the Top KRA management, employees working at the Customs and Border Control Department and Transit Monitoring Unit (TMU). Slovin’s formula (1960) was used in getting a sample size of 80 respondents who were selected using stratified random sampling. Data for the study was collected using primary means using structured questionnaires. The collected data were analyzed using descriptive and inferential statistics and presented in tables and figures. The study found out that the three aspects of ECT investigated including System Infrastructure (r=0.50, p=0.686), User Ability (r=0.554, p=0.00) and System Compatibility (r=0.398, p=0.001) had a positive effect on C&BC department performance. The study thus concludes that the sustainability, viability and profitability of C&BC department will be based on the efficiency in coordination of these aspects. The study recommends that the functionality of ECT should be enhanced to improve the transactions at the borders which leads to improved revenue collection at the borders while reducing transit goods violations. Kenya Revenue Authority is also recommended to recheck the need to enhance ECT reforms and enhance systems validations and integrity so as to enhance C&BC performance