Effect of Systems Automation on Customs Revenue Performance in Kenya
Customs mandate are revenue collection, border protection, collection of international trade statistics and trade facilitation (Ayuma, 2018). Revenue collection has been used as the apex yardstick for measuring the performance of Kenya’s customs and border control department. In the year 2016/2017 and 2017/2018, KRA missed its target by 18.5 billion and 15 billion respectively. This shortfall in collection created a deficit in government project’s financing affecting customs revenue performance. The study had three independent variables: Scanner technology, RECTS and ICMS. This study was grounded by three theories: Technological Determinism Theory, General System theory and International Trade theory. The study adopted the explanatory research design. A population of 902 clearing and forwarding companies and customs officers were used out of which a sample of 227 respondents was selected, through Taro Yamane sampling method. The study used both primary data by use of structured questionnaires and secondary data obtained from relevant materials which represent academic research, with the selected period being 2017 to 2019. Data was analyzed into descriptive statistics and inferential statistics by use of SPSS (20) and presented in tables, pie charts and cross tabulation. Data was tested for validity and reliability using the Cronbach Alpha Score as the test for reliability. In conclusion, although systems automation comes with costs attributable to ICT infrastructure, synchronization hitches, training and security enhancements, its implementation is important in achieving revenue growth and operational efficiencies. Recommendations for further study was on effects of Business Intelligence and Customs Oil Stocks Information Systems on customs performance.