Effect of Digital Technologies on Trade Facilitation at Nairobi’s Customs Stations: Moderating Role of User Competence

Abstract

Digital technologies are enhancing trade facilitation globally by streamlining customs operations, reducing costs, and boosting efficiency. This study aimed to fill this gap by evaluating the effects of key digital technologies on trade facilitation at Nairobi’s customs stations: Inland Container Depot (ICD) Embakasi, Jomo Kenyatta International Airport (JKIA), and Wilson Airport. It assessed how the Single Window System (SWS), Non-Intrusive Inspection (NII), and Integrated Customs Management System (iCMS) affect trade facilitation and how user competence moderates this effect as a moderating factor. It assessed how the Single Window System (SWS), Non-Intrusive Inspection (NII), and Integrated Customs Management System (iCMS) affect trade facilitation and how user competence moderates this effect as a moderating factor. The study employed a quantitative design which was grounded in the Technology Acceptance Model, Diffusion of Innovations Theory, and Systems Thinking Theory. Structured questionnaires were administered to 350 respondents (clearing agents, customs officials, and logistics managers) selected through stratified random sampling. Findings indicated that SWS (β = 0.411, p < 0.001) and iCMS (β = 0.427, p < 0.001) had a significant positive effect on trade facilitation, explaining a substantial variance (R² = 0.735 in Model 2). NII showed moderate effects (β = 0.139, p = 0.130), approaching significance with interactions. The direct and moderating effect of user competence (p > 0.05) was not significant, likely due to training gaps. Moderation hypotheses were not rejected, but all main effect null hypotheses were. In conclusion, digital technologies enhance trade facilitation in Kenya, but their effectiveness is limited by issues of interoperability, infrastructure maintenance, and user skills. Recommendations include policy reforms for system integration, expanded training programs, and infrastructure investments to align with AfCFTA goals and global standards, ultimately improving Kenya’s trade competitiveness.