The Effects of Adoption of Customs Electronic Procedures on Trade Facilitation by Clearing and Forwarding Agents in Nairobi, Kenya
The study aimed at determining the impact of the adoption of customs electronic procedures by customs officers in Kenya. The research had three specific objectives which were; to determine the effects of harmonization of customs electronic procedures on Trade facilitation by clearing and forwarding agents in Nairobi, to examine the automation of Customs Electronic procedures on Trade facilitation, to establish how the adoption of Cargo Information System on Customs Electronic procedures by customs officers, affects trade facilitation.. The overall objective of the study was to establish the effects of trade facilitation in Kenya. The research was anchored on the three theories namely; Technological change theory, Technological acceptance theory, and theory of reasoned action. The research employed a descriptive research design and had a target population of 892 officers in the clearing and forwarding firms within Nairobi. This research used structured questionnaires as a primary source of data. A pilot study was carried out on 20 officers that did not form part of the target population to test the reliability and validity of the research instrument. The study used Cronbach’s alpha (α) coefficient to test reliability, while the face and content validity were used for checking for validity of the research instrument. The primary data collected was analyzed with the use of SSPS version 28. Data analysis was conducted using descriptive statistics and inferential statistics by use of moderated multiple regression analysis. The study revealed that the harmonization of customs electronic procedures, automation of Customs Electronic procedures, and the adoption of cargo Information systems had a major influence on trade facilitation in Kenya. It was also discovered that harmonization of customs electronic procedures, automation of Customs Electronic procedures, and the adoption of cargo Information System had a variation of 93.5% on facilitation of trade implying that since the automation of the customs procedures by Customs administration has had a significant increase in revenue collection hence effective trade facilitation. This resulted in greater border control hence a significant growth in regional trade. There is a need for tight enforcement measures in the implementation of the new system to enhance growth in revenues by the customs administration. In conclusion, the adoption of electronic customs procedures requires an investment in technology, training, security enhancement, and management of hitches hence the adoption of these systems will facilitate trade growth in the region. Harmonization and adoption of electronic procedures regionally allow data sharing and competitiveness globally. The research recommends that it’s important for future researchers to undertake the same or replicate empirical studies in the harmonization of electronic customs procedures on the operational performance in East Africa to validate the findings and conclusions of this study. The study provides future researchers with a useful conceptual and methodological reference to carry out studies in this area of adoption of customs electronic procedures.