Effect of Electronic Monitoring on Excise Duty Compliance Among Cigarette Importers in Nairobi County, Kenya
DOI:
https://doi.org/10.70619/vol5iss11pp65-76-708Keywords:
Electronic Monitoring, Excise Duty Compliance, Cigarette ImportersAbstract
Excisable Goods Management System, excise duty compliance rates among cigarette importers in Nairobi, Kenya, remain persistently low. The key aim of the study was to determine the effect of electronic monitoring on excise duty compliance among cigarette importers in Nairobi County, Kenya. The study was anchored on the following theories: the Ability to Pay Theory and the Diffusion of Innovation Theory. The study adopted an explanatory research design. The study's target population was 86 cigarette importers in Nairobi County. The study had two respondents from each of the 86 cigarette importers in Nairobi County, making a total of 172 respondents. 143 respondents, that is 83.1% of the 172 respondents who were intended for the study, took part and submitted fully completed questionnaires. The study used primary data, collected through structured questionnaires administered via a drop-and-pick-later method. The collected data were analyzed using both descriptive and inferential statistics. The study analysis found that electronic monitoring had a strong positive effect on excise duty compliance (β = 0.232, p = .014). Regarding electronic monitoring, the study demonstrates its effectiveness in improving excise duty compliance. The government should invest in integrated real-time tracking systems, including GPS and RFID technologies, for all high-risk excisable goods. Policies should also mandate electronic cargo monitoring for all transit goods to prevent diversion and smuggling at border points. Future research should investigate the effects of behavioral factors, such as tax morale and social norms, in shaping excise duty compliance attitudes.
References
Abdullai, H. M., & Nyaoga, R. B. (2017). Effect of automated teller machine usage on operational performance of commercial banks in Nakuru County, Kenya. International Journal of Economics, Finance and Management Sciences, 5(3), 162–167.
Amon, D., Helm, R. R., Clark, N., Harden-Davies, H., & Rogers, A. D. (2021). Protect high seas biodiversity. Science, 372(6542), 1048–1049.
Belahouaoui, A., & Attak, H. (2024). Digital taxation, artificial intelligence, and Tax Administration 3.0: Improving tax compliance behavior – A systematic literature review using textometry (2016–2023). Accounting Research Journal, 37(2), 172–191.
Chigbu, E., Akujuobi, L. E., & Ebimobowei, A. (2012). An empirical study on the causality between economic growth and taxation in Nigeria. Current Research Journal of Economic Theory, 4(2), 29–38.
Cooper, D., & Schindler, P. (2011). Business research methods (10th ed.). New York, McGraw-Hill/Irwin
Denny, M. (2018). Excise Taxes and Imperfect Competition in the U.S. Brewing Industry.
Kenya Revenue Authority (2017). Kenya Revenue Authority Online portal. Retrieval roomhtt p//www.kra.ke/portal
Kenya Revenue Authority (2021). New Excise Goods Management System in Kenya
Kirchler, E., Kogler, C., & Muehlbacher, S. (2014). Cooperative tax compliance: From deterrence to deference. Current Directions in Psychological Science, 23(2), 87-92.
Kiring’a, S. E., Jagongo, A., Kiio, J. M., Njuguna, I. M., Muguongo, G. K., Nganyi, M. S., ... & Qiao, Y. (2019). Impact of online tax filing on tax compliance among small and medium enterprises (SMEs) in Kibwezi Sub-County in Kenya. International Journal of Current Research, 9(4), 45196-45206.
KRA (2019). Annual Revenue Performance FY 2019/2020. Available At Https://Www.Kra.Go.Ke/En/Media-Center/Press-Release/916-Annual-Revenue-Performance-Fy-2019-2020. Accessed On 12th 06 2021.
Mugambi, D. N. (2020). Factors influencing turnover tax compliance in the Kenya Revenue Authority domestic taxes department in Nairobi County (Doctoral dissertation).
Mugenda, O. M., & Mugenda, A. G. (2003). Research Methods, Quantitative and Qualitative Analysis-African Center for Technology Studies. Nairobi: Applied Research and Training Services (ACTS).
Mugenda, Olive M, and Mugenda, A. G. (1999). Research methods: Quantitative and qualitative approaches. Acts Press.
Muhammed, A., & Tesafa, Z. (2015). The Impact of Electronic Tax Register Machines on VAT Compliance in Ethiopia: The Case of Bahir Dar City. Research journal of finance and accounting, 6(13), 17-21.
Muturi, P. K., Cheboi, J., & Kemboi, A. (2019). Does operational transparency affect tax avoidance for firms listed at the NSE, Kenya? African Journal of Emerging Issues, 1(6), 59–75.
OECD. (2013). Tax Policy Reform and Economic Growth. OECD Tax Policy Study Auditing, 17(2).
Olatokun, W. M., & Igbinedion, L. J. (2009). The adoption of automatic teller machines in Nigeria: An application of the Theory of Diffusion of Innovation. Issues in Informing Science and Information Technology, 6, 373–393.
Retrieved fromIhttps://www.taxkenya.com/new-excise-goods-management-system-kenya/
Rogers, E. M. (1983). Diffusion of innovations (3rd ed.). New York: Free Press.
Sekaran, U., & Bougie, R. (2010). Research methods for business: A skill-building approach (5th ed.). Haddington: John Wiley & Sons.
Smith, A. (1776). An inquiry into the nature and causes of the wealth of nations. London: W. Strahan and T. Cadell.
Tule, K., Osana, J. O., Udoma, J. A., Ebuh, G. U., Udoh, E. A. P., & Ujunwa, A. (2019). Assessing the spillover effects of U.S. monetary policy normalization on Nigeria's sovereign bond yield. Financial Innovation, 5(1), 32.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Laura Wanjohi, Neddy Soi, Doris Gitonga
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
