Electronic Cargo Tracking and Trade Facilitation Among Clearing and Forwarding Companies at Inland Container Deport Nairobi, Kenya

Abstract

The increasing forces of globalization around the world require that goods and services are moved from one part of the country to the other hence the need for customs. It is the responsibility of KRA to ensure that all taxes have been collected on behalf of the government of Kenya. However, several challenges have been evident in the operations of KRA as far as the realization of its objectives of customs system automation on trade facilitation is concerned. The purpose of this study was to establish the effect of electronic cargo tracking on trade facilitation among clearing and forwarding companies at inland containers deport Nairobi, Kenya. The study was grounded by the New Trade Theory. The explanatory research design was used. The target population of this study was the 369 clearing and forwarding agents and KRA staff and transporters, and a sample size of 191 respondents. Primary data was collected through a close-ended questionnaire. The data was analyzed using descriptive and inferential statistics. The study found that electronic cargo tracking has a positive and significant effect on trade facilitation (β = 0.323; p = 0.000). The study emphasized the direct contribution of electronic cargo tracking to the enhancement of trade facilitation processes. KRA is recommended to support research initiatives that focus on the continuous improvement of customs systems and trade facilitation technologies. The study recommends that KRA establish robust monitoring and evaluation mechanisms to assess the implementation and impact of electronic cargo tracking. The study recommends that the treasury establishes and implement policies that encourage the seamless integration of advanced technological solutions within the customs and trade facilitation processes.