Moderating Role of Regulatory Framework in the Relationship between Seal Integrity Testing Procedures and Trade Facilitation at Selected Airports in Kenya

Abstract

The study was motivated by persistent inefficiencies in cargo security processes, including seal tampering, which increase trade costs and undermine Kenya’s competitiveness as a regional logistics hub. This research project sought to assess the moderating effect of the regulatory framework on the effect of Seal Integrity Testing Procedures (SITP) on trade facilitation at selected airports in Kenya. The research was guided by two specific objectives: to assess the effect of Seal Integrity Testing Procedures (SITP) on trade facilitation and to determine the moderating role of regulatory framework on the effects of Seal Integrity Testing Procedures (SITP) on trade facilitation. The theoretical foundation of the study draws on New Trade Theory and Situational Crime Prevention Theory. An explanatory research design was employed, utilizing structured questionnaires to collect primary data. The total population was estimated at 1,850 individuals. The sample size was 329 respondents, including clearing agents, customs officials, and logistics managers. Data was collected from Jomo Kenyatta International Airport (JKIA), Wilson Airport, and Eldoret Airport. The study used stratified random sampling, as per Yamane’s formula, to ensure representativeness across stakeholder groups. Data analysis involved descriptive statistics (means, frequencies) and inferential statistics (multiple regression analysis) to test the null hypotheses. The moderating effect of the regulatory framework on the effect of Seal Integrity Testing Procedures (SITP) on trade facilitation was assessed through a hierarchical regression model. Regression of coefficients showed that seal integrity testing procedures had a positive and significant effect on trade facilitation at JKIA, Wilson, and Eldoret Airports (β=0.561, p=0.000). The study found that the regulatory framework has a moderating effect on Seal Integrity Testing Procedures (SITP) on trade facilitation at selected airports in Kenya (p<0.05). The study concluded that seal integrity testing procedures in trade have been shown to positively impact trade facilitation by streamlining processes, reducing delays, and enhancing the security and efficiency of cross-border trade. KRA should adopt a risk-based approach to seal integrity checks, prioritizing high-risk containers based on pre-defined criteria (for example, origin, type of goods, previous compliance record). Policy interventions should therefore emphasize the adoption of a regulatory framework for maximum trade facilitation at Kenyan airports.