Impact of reforms and modernization programs on the performance of customs services department: a quantitative study on Kenya revenue authority

Abstract

Abstract The Kenya revenue authority initiated market type reforms called the revenue Administration reform and modernisation program (RARMP) which commenced in 2004/05 with the objective of transforming KRA into a modem, fully integrated and Client-focused organization. The customs reform and modernization (CRM) aimed at Enhancing and modernizing service delivery in customs services department. The study Seeks to establish the impact of customs reform and modernization program on the Performance of customs service department of KRA. This is a correlational study to determine the effect of customs reform and modemization On performance of the customs services department. The target population is drawn from The 1,397 customs services department employees of the Kenya revenue authority. A Simple random sampling method was employed to select a sample of 90 respondents from The target population of 620 employees in the department in Nairobi. Primary data Collected through questionnaires was used to determine the extent to which various Reforms had been implemented in the department. The questionnaires were administered By the researcher. Quantitative analysis was employed using the procedures within the Statistical package for social sciences (SPSS). The extent of implementation of various Customs reforms was analysed based on the mean scores. The impact of reforms on Performance was analysed using multiple regression analysis at 95% confidence level. The regression results showed that the reforms had no significant impact on the Performance of the customs department and that of the three reforms, the study found that The most implemented reform was the business automation reforms (mean=4.017419), Followed by the structural reforms (mean=3.880323) and the least implemented reform Was the enforcement reforms (mean=3.717742). The study therefore concludes that the Customs reforms have not had a significant impact on the performance of the customs Services department of the Kenya revenue authority. The study recommends that Kenya Revenue authority to revisit the need to implement various reforms so as to enhance Performance.