Effect of Technological Infrastructure on Operational Efficiency at the Inland Container Depot (ICD) In Naivasha, Kenya
DOI:
https://doi.org/10.70619/vol5iss5pp79-89Keywords:
Technological infrastructure, operational efficiency, Inland Container Depots (ICDs)Abstract
In 2017, the Kenya Revenue Authority's customs department encountered 400 complaints from importers and agents about delays in container clearance, despite the introduction of the Single Electronic Window System in 2014. Challenges persist, particularly in rail transport from Mombasa to the Inland Container Depot, due to inadequate verification bays and warehousing facilities, a contrast to China's efficient system. Additionally, the manual documentation process at the Naivasha ICD and fragmented communication networks exacerbate delays, impacting regional cooperation and business performance for clearing agents. This study aimed to investigate the impact of technological infrastructure on operational efficiency at the Inland Container Depot (ICD) in Naivasha, Kenya. The study adopted the Diffusion of Innovations Theory. The research employed an explanatory survey research design, targeting 1,200 clearing and forwarding agents at the Inland Container Depot, with 350 of them situated in Nairobi. Using Yamane's formula, a sample size of 201 was selected to ensure proper representation. These resulted in a target of 174 clearing and forwarding agents, 12 transporters, and 15 customs officials, totaling 201 participants. Data was collected through open and closed structured questionnaires, yielding both qualitative and quantitative data. Descriptive statistical tools such as mean scores, standard deviation, and percentages were used for analysis, while inferential statistics involved correlation and regression analysis. The regression analysis results revealed that technological infrastructure (β=0.388, P=0.000) has a positive and significant effect on operational efficiency. The study concluded that technological infrastructure positively affects the operational efficiency of ICDs. The study advised to ensure that the technological infrastructure they are making use of is up to date
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Copyright (c) 2025 Daniel Mutuma Kamengu, Dr. Doris Gitonga (PhD), Dr. Yusuf Kibet
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