Effect of Electronic Cargo Tracking System Implementation on Trade Facilitation at the Inland Container Depot, Nairobi, Kenya

Abstract

The purpose of the study was to evaluate the impact of ECTS implementation on trade facilitation outcomes at ICD Nairobi, Kenya. An explanatory research design was adopted, targeting a population of 2,100 customs officers, clearing agents, and logistics providers, from which a stratified random sample of 325 respondents was selected. Data were collected through structured questionnaires, cleaned through psychometric tests, and subjected to diagnostic tests to confirm regression assumptions. Both descriptive and inferential statistical techniques were used, including correlation analysis and multiple regression models. The results demonstrated that technological infrastructure had a significant positive effect on trade facilitation (β = 0.374, p = 0.001), confirming the value of stable connectivity and robust ICT systems. System features, including GPS monitoring, electronic seals, and automated alerts, also showed a strong positive impact (β = 0.382, p = 0.000). Based on this, this study concludes that enhancing technological infrastructure, such as improved system integration level, network connectivity quality, real-time data processing capability, and API integration capabilities at Nairobi ICD, would improve trade. The study also observed that system features have a positive and statistically significant effect on trade facilitation. Based on this study's findings, the study concludes that enhanced system features by improving GPS tracking precision, electronic seal technology, alert management system, and document digitization level will increase trade facilitation.  Based on the above conclusions, the study suggests that ICD should strengthen its system integration and connectivity, enhance system features, provide continuous training, and improve organizational support, all of which would ensure improved trade facilitation.