Influence Of Regional Electronic Cargo Tracking System On Management Of Transit Goods In Kenya: A Case Of Kenya Revenue Authority Customs Department

Abstract

Handling of transit goods by Kenya Revenue Authority has been a challenge for many years. The use of physical escort of transit goods proved inefficient and risky. The licensing of private vendors to track goods had a few positive effects but still fell short of KRA requirements. This challenge is what informed KRA to sign a memorandum of understanding with Uganda Revenue Authority and Rwanda Revenue Authority for the rollout of regional electronic cargo tracking. The research sought to evaluate the influence of regional electronic cargo tracking on management of transit goods in Kenya Revenue Authority. The study seeks to determine the influence of seamless monitoring, transit time, transparency and accountability on management of transit goods. The study was limited to Kenya. The Technology Acceptance Model and system theories were used as RECTS is an information technology system whose influence to Customs operations can be explained by these theories. This was a descriptive research, where the target population was drawn from the KRA customs department staff working in the transit monitoring unit, customs clearing agents, truck drivers and truck owners. Stratified and simple random sampling techniques were used to generate the sample size and the respondents. As sample size of 60 respondents was used to carry out this research. Research data was collected through the use of structured questionnaires and structured interviews. The achieved data was analyzed using Statistical Package for Social Sciences (SPSS) software and presented by use of tables and graphs. The research findings pointed out that seamless monitoring, transit time, transparency among stake holders and accountability positively influence the management of transit goods. The seamless monitoring has ensured quick insemination of alerts to responsible units, quick response to alerts by RRUs, reduced dwell time at Malaba and Busia borders and has drastically reduced the dumping of transit goods in Kenya. RECTS has also led to the reduction of cargo transit time along the northern corridor, led to improvement of transparency among stakeholders in the business and has improved accountability of all transit goods armed with RECTS seals. This has in turned improved the management of transit goods by Customs department of KRA. KRA however needs to invest more finances in the TMU unit to ensure electronic seals are procured, this would reduce delays due to shortage of seals at loading points. Lastly, there is need to deploy more staff for the creation of extra RRU units to reach the optimal required number of 17 units.