EFFECT OF CUSTOMS ADMINISTRATION STRATEGIES ON CROSS BORDER LOGISTICS EFFICIENCY IN EAST AFRICA MEMBER COUNTRIES. A CASE OF KENYAN BORDERS WITH UGANDA AND TANZANIA

Abstract

The main purpose of the research study was to establish the effect of customs administration on cross border logistics efficiency among East African member states. The study used an explanatory research design and the total population for the study was Uganda and Tanzania borders. The study targeted 51 senior staff, 94 middle management staff and 141 junior staff. The sample size was 47 senior staff, 92 middle management staff and139 junior staff. Questionnaires were the major data collection instruments. The data was analyzed using descriptive and inferential statistics. The findings showed a strong and positive relationship between custom harmonization and cross border logistics efficiency. There was a strong and positive relationship between custom automation and cross border logistics efficiency. There was also a strong and positive relationship between cross-border management and cross border logistics efficiency. The findings also showed a very strong and positive relationship between capacity improvement and cross border logistics efficiency. The results implied that every per unit increase in custom harmonization leads to 0.193 increase in cross border logistics efficiency. An increase in custom automation leads to 0.096 increase in cross border efficiency. A unit increase in cross border management leads to 0.310 increases in cross border efficiency. A unit increase in capacity improvement leads to 0.225 increase in cross border logistics efficiency. The study concluded that there had been little improvement in cross border logistics efficiency. Automated coding system had greatly improved cross border logistics efficiency. Centralized customs among the member countries had made movement of goods more efficient. The study recommended that member states should come up with a policy that reduces time of clearing goods by harmonizing the custom procedures. East Africa member states should improve on automated system to ensure that it identifies all goods passing through the border posts. EAC member states should come up with policies that eliminate gaps in sharing of information. East African member states should regularly train their staff on emerging trend in cross border logistics management . Key Words : Custom Harmonization, Customs Automation, Cross-Border Management, Capacity Improvement CITATION: Kilonzi, F., Odunga, R., & Kibet, Y. (2019). Effect of customs administration strategies on cross border logistics efficiency in East Africa member countries. A case of Kenyan borders with Uganda and Tanzania. The Strategic Journal of Business & Change Management, 6 (4), 1397 – 1415.