The effects of Kenya Revenue Authority regulations of Kenya international business in East Africa

Abstract

This study was carried out with the aim of identifying the place, if any, of national institutions within international trade. It sought to do so within the East African Community, specifically Kenya's international business with her EAC counterparts. The Kenya Revenue Authority was chosen as it has more interactions with the EAC members, especially at the borders. In the first chapter, the study explores the background of the study with emphasis on the concept of international business as well as the concept of regional integration. Attention is accorded to the East African Community, especially the integration process of the EAC as well as the customs union. The customs union is given special attention because in Kenya, the responsibility of customs roles and procedures fall under the KRA docket. As such, there is also an introduction to the Kenya Revenue Authority within this first chapter, giving a detailed description of this major national institution. Chapter two focuses on the literature aspect related to the study. It delves into the theoretical foundation of the study, presenting different views espoused on regional integration. It is here that there is an exploration of the nature of regional blocs, outlining the process of regional integration. The practice of regional integration is also outlined with emphasis on what characterizes a successful integration process. It is here that the characteristics of regional blocs are outlined. Chapter three is on the methodology used in the study. A qualitative case study approach was employed as the study was focused on one organization. Respondents were drawn from officers stationed at seven border points, which were deemed to be major entry and exit points into the EAC countries. Chapter four is about data analysis, results and discussions. The results were analysed and are presented in tables and figures. It is here that the effects of KRA's regulations on cross border trade within the EAC are discussed. In chapter five is a discussion or the summary of the findings, as well as the conclusions and recommendations. The study results showed that KRA has a role to play in Kenya's international business within the EAC, especially in the area of clearance of goods and border security. It revealed that KRA's policies and regulations have a positive effect on how smooth business flows across the borders, and that a lapse in implementation of some of the institution's policies results in a negative effect on business across the EAC.